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Acme corporation is considering two alternative coordinate measuring machines (CMM), and MARR is 15% per year. Plot the sensitivity of each alternative in Excel for
Acme corporation is considering two alternative coordinate measuring machines (CMM), and MARR is 15% per year. Plot the sensitivity of each alternative in Excel for the following three cases of varying Net Annual Revenue (NAR), where NAR - Annual Revenues - Annual Expenses: = -50% 0% +100% Using annual worth (AW) analysis, which alternative has higher sensitivity to the Net Annual Revenue (NAR)? Show computations and past an Excel chart. Alternative A Alternative B Item Capital investment $500,000 $375,000 Annual revenue $150,000 $130,000 Annual expenses $75,000 $80,000 Salvage value $50,000 $37,000 Useful life 5 years 6 years
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