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An industrial machine costing 14,000 will produce net cash savings of 5,000 per year. The machine has a five-year useful life but must be returned

An industrial machine costing 14,000 will produce net cash savings of 5,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs will cost 5,000. The company's MARR is 15% per year.

A) project's PW is more sensitive to changes in cost of the machine

B) project's PW is more sensitive to changes in net cash savings

C) project's PW is equally sensitive to changes in both factors

D) the information presented is not sufficient to conclude

E) none of the above

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