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4.4 The Comet Transportation Company is planning to buy a new fleet of trucks requiring an initial investment of $5,000,000, and $10,000,000 annually to maintain

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4.4 The Comet Transportation Company is planning to buy a new fleet of trucks requiring an initial investment of $5,000,000, and $10,000,000 annually to maintain and operate. The expected life of the new fleet is 7 years. The revenue is estimated to be $13,500,000 per year and the salvage value is expected to be $200,000. The MARR is 12%. Conduct a sensitivity analysis based on the given information a) Calculate the AW of the Base case based on above given data. (Do not use PW or FW) 2 point] b) Calculate the AW for the range of -10% to +15% for initial cost. (Do not use PW or FW) [4 point] c) Calculate the AW for the range of -8% to +12% for annual revenue. (Do not use PW or FW) [4 points] 4.4 The Comet Transportation Company is planning to buy a new fleet of trucks requiring an initial investment of $5,000,000, and $10,000,000 annually to maintain and operate. The expected life of the new fleet is 7 years. The revenue is estimated to be $13,500,000 per year and the salvage value is expected to be $200,000. The MARR is 12%. Conduct a sensitivity analysis based on the given information a) Calculate the AW of the Base case based on above given data. (Do not use PW or FW) 2 point] b) Calculate the AW for the range of -10% to +15% for initial cost. (Do not use PW or FW) [4 point] c) Calculate the AW for the range of -8% to +12% for annual revenue. (Do not use PW or FW) [4 points]

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