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4 You have been assigned to evaluate sensitivity of an engineering project. Its estimated initial investment is Tk15 million at the present time, where an
4 You have been assigned to evaluate sensitivity of an engineering project. Its estimated initial investment is Tk15 million at the present time, where an expected annual income of Tk3,600,000 plus thousands of the last two digits of your student ID (for instance, if your ID is 170021020, add 20,000) for five years (starting from the first year). The salvage value at the end would be Tk7.2 million. Evaluate the sensitivity of the project rate of return (RoR) to 15% and 30% increase and decrease in initial investment, annual income, project life, and salvage value. In particular appraise the following to the manager: i. Sensitivity analysis of initial investment (for 15% and 30% increase and 15% and 30% decrease). ii. Sensitivity analysis of project life (for 15% and 30% increase and 15% and 30% decrease). iii. Sensitivity analysis of annual income (for 15% and 30% increase and 15% and 30% decrease). iv. Sensitivity analysis of salvage value (for 15% and 30% increase and 15% and 30% decrease). where my ID: 170021165 4 You have been assigned to evaluate sensitivity of an engineering project. Its estimated initial investment is Tk15 million at the present time, where an expected annual income of Tk3,600,000 plus thousands of the last two digits of your student ID (for instance, if your ID is 170021020, add 20,000) for five years (starting from the first year). The salvage value at the end would be Tk7.2 million. Evaluate the sensitivity of the project rate of return (RoR) to 15% and 30% increase and decrease in initial investment, annual income, project life, and salvage value. In particular appraise the following to the manager: i. Sensitivity analysis of initial investment (for 15% and 30% increase and 15% and 30% decrease). ii. Sensitivity analysis of project life (for 15% and 30% increase and 15% and 30% decrease). iii. Sensitivity analysis of annual income (for 15% and 30% increase and 15% and 30% decrease). iv. Sensitivity analysis of salvage value (for 15% and 30% increase and 15% and 30% decrease). where my ID: 170021165
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