Answers please!
QL oints) Consider the following spider plot and the data table to answer the following questions. Spider Plot $300,000 $200,000 Annual Savings Initial Investment Annual Maintenance Market Value $100,000 A B Present Worth ($) $0 $-100,000 $-200,000 $-300,000 -30% -20% -10% 0% 10% 20% 30% Percent change (%) Project Data Initial Investment $1'844,000 Annual Savings $108,000 Annual Maintenance $15,000 Market Value $130,000 Project Life (years) 20 1) According to the spider plot, select the correct choice below; a) Change in annual savings has the least effect on PW. b) Change in initial investment has positive effect. c) Change in market value has negative effect. d) The project is more sensitive to change in market value than change in annual savings. e) The project is more sensitive to change in annual maintenance than change in initial investment Justify: 2) According to the spider plot and project data, if the Annual Savings increase to $144,000, it can be concluded that: a) The project will be in the break-even point b) The project will be profitable c) The project will not be profitable d) The MARR will increase e) The MARR will decrease Justify: 3) According to the spider plot, it can be concluded that: a) The project has an IRR bigger than MARR b) The project has an IRR smaller than MARR c) The project has IRR equal to MARR d) The project should be accepted e) The information is not sufficient to answer. Justify: 4) According to the spider plot, select the correct choice below; a) Break-even point for market value is point C, which is $134,000. b) Break-even point for market value is point C, which is $214,500. c) If you increase annual savings value by 20 %, you can reach the break-even point for salvage value, which is point A. d) You need to increase annual expenses in order to reach break-even point, which is point A. e) The information is not sufficient to determine break-even points. Justify: 5) If you have only one project, select the correct choice below; a) If IRR 0, then we can claim that project is worth to invest for any MARR> 8%. c) If PW (MARR= 10 %) 0, then FW (MARR= 12 %) 0, then we invest in the project for any MARR that is less than the given. Justify: QL oints) Consider the following spider plot and the data table to answer the following questions. Spider Plot $300,000 $200,000 Annual Savings Initial Investment Annual Maintenance Market Value $100,000 A B Present Worth ($) $0 $-100,000 $-200,000 $-300,000 -30% -20% -10% 0% 10% 20% 30% Percent change (%) Project Data Initial Investment $1'844,000 Annual Savings $108,000 Annual Maintenance $15,000 Market Value $130,000 Project Life (years) 20 1) According to the spider plot, select the correct choice below; a) Change in annual savings has the least effect on PW. b) Change in initial investment has positive effect. c) Change in market value has negative effect. d) The project is more sensitive to change in market value than change in annual savings. e) The project is more sensitive to change in annual maintenance than change in initial investment Justify: 2) According to the spider plot and project data, if the Annual Savings increase to $144,000, it can be concluded that: a) The project will be in the break-even point b) The project will be profitable c) The project will not be profitable d) The MARR will increase e) The MARR will decrease Justify: 3) According to the spider plot, it can be concluded that: a) The project has an IRR bigger than MARR b) The project has an IRR smaller than MARR c) The project has IRR equal to MARR d) The project should be accepted e) The information is not sufficient to answer. Justify: 4) According to the spider plot, select the correct choice below; a) Break-even point for market value is point C, which is $134,000. b) Break-even point for market value is point C, which is $214,500. c) If you increase annual savings value by 20 %, you can reach the break-even point for salvage value, which is point A. d) You need to increase annual expenses in order to reach break-even point, which is point A. e) The information is not sufficient to determine break-even points. Justify: 5) If you have only one project, select the correct choice below; a) If IRR 0, then we can claim that project is worth to invest for any MARR> 8%. c) If PW (MARR= 10 %) 0, then FW (MARR= 12 %) 0, then we invest in the project for any MARR that is less than the given. Justify
