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A new explosive detection robot will be built by TNT Enterprises and will cost $15,000,000 to build, $850,000 annually to maintain and operate and have
A new explosive detection robot will be built by TNT Enterprises and will cost $15,000,000 to build, $850,000 annually to maintain and operate and have an expected life of 5 years. The revenue is estimated to be $1,600,000 per year. The MARR is 8%. Conduct a sensitivity analysis based on the given information.
4.4 A new explosive detection robot will be built by TNT Enterprises and will cost $15,000,000 to build $850,000 annually to maintain and operate and have an expected life of 5 years. The revenue is estimated to be $1,600,000 per year. The MARR is 8%. Conduct a sensitivity analysis based on the given information. a) Calculate the PW of the Base case based on above given data. [1 point] b) Calculate the PW for the range of-15% to +15% for initial cost. [2 point] c) Calculate the Pw for the range of-25% to +25% for annual revenue. [2 points]Step by Step Solution
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