Question
A trucking company is considering adding two-way satellite communications to their trucks at a cost of $10 million. The satellite system is expected to save
A trucking company is considering adding two-way satellite communications to their trucks at a cost of $10 million. The satellite system is expected to save 60% of the companys $2 million annual long distance expense and $250,000 annually in reduced driving cost. The system will have an 8 year useful life and no salvage value. The company uses a MARR of 15%. Analyze the cash flow and develop a sensitivity analysis, including a spider plot, for variations of up to +/- 40% of the savings in phone expenses and reduced driving costs.
Please show full detailed steps for five stars! Please draw the cash flow diagram.
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