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a) Should we make either a go decision or no-go decision for this project without further analysis? Explain by showing your work. (10 points) b)
a) Should we make either a "go decision" or "no-go decision for this project without further analysis? Explain by showing your work. (10 points) b) Determine the Annual Worth (AW) for the identified cell, assuming all other factors remain at their pessimistic values. (10 points) c) Determine the sensitivity of the AW to +20% changes in annual revenue in the most likely scenario and interpret the result. (10 points) Initial Cost Annual Revenues Annual Expenses Salvage Value Useful Life MARR Optimistic Most Likely Pessimistic 300,000 350,000 400,000 150,000 130,000 120,000 60,000 75,000 85,000 20,000 15,000 0 18 16 12 12% 10% 8% Pess Opt Initial Cost ML MARR Opt Pess ML Opt Pess ML Pess ML Opt Pess Annual Revenue ML Pessimistic Most Likely Optimistic Pessimistic Annual Expenses Most Likely Optimistic Pessimistic Most Likely Optimistic Opt
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