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6) (10 POINTS) Music Makers, Inc. is considering investing in a new piece of equipment with an expected lifetime of ten years. The company's experts

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6) (10 POINTS) Music Makers, Inc. is considering investing in a new piece of equipment with an expected lifetime of ten years. The company's experts have differing opinions on the gross income expected from the new equipment, and its salvage value, as follows. Gross Income: $30,000 - $60,000 Salvage Value: $10,000 - $40,000 Below are graphs of present worth as a function of gross income and salvage value: 20.0005 20 0005 10.0005 100005 $0 SD $0 15-0005 45.00 60 000 10 000 NPV 10-000$ 20-005 NPV 10 0005 20-000$ 20 0005 30-000$ 30 000 40.000$ 40-0005 Gross Income Salvage Value (a) (4 POINTS) To which parameter is the present worth of the project more sensitive? Explain why it makes sense for that parameter to be the more important of the two. (b) (3 POINTS) If you had to make a decision about the project based on the above graphs, what would you decide and why? Explain. (c) (3 POINTS) If you had the option to get more information before making a decision, what information would you want, and why

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