Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A new lunar rover will be built by Dora the Explorer and will cost $23,000,000 to build, $2,700,000 annually to maintain and operate and have

image text in transcribed
A new lunar rover will be built by Dora the Explorer and will cost $23,000,000 to build, $2,700,000 annually to maintain and operate and have an expected life of 9 years. The revenue is estimated to be $4,800,000 per year. The MARR is 15%. Conduct a sensitivity analysis based on the given information a) Calculate the PW of the Base case based on above given data b) Calculate the PW for the range of -15% to +15% for initial cost. c) Calculate the PW for the range of-20% to +20% for annual revenue d) Prepare a tabular distribution by using PW as FoM e) Rank the order of input variables for their impact of the PW. f) Prepare a sensitivity graph comparing the percentage of deviation from [0.5 point] [0.5 point+0.5 point] [0.5 point+0.5 point] [0.5 point+1 point +1 point [0.5 point+0.5 point] the base case to the PW. [0.5 point+0.5 point]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Asian Finance REITs Trading And Fund Performance

Authors: David Lee, Greg N. Gregoriou

1st Edition

0128009861, 978-0128009864

More Books

Students also viewed these Finance questions