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??anyone 4.3 The Comet Transportation Company is planning to buy a new fleet of trucks requiring an initial investment of $5,000,000, and $12,000,000 annually to
??anyone
4.3 The Comet Transportation Company is planning to buy a new fleet of trucks requiring an initial investment of $5,000,000, and $12,000,000 annually to maintain and operate. The expected life of the new fleet is 5 years. The revenue is estimated to be $15,000,000 per year and the salvage value is expected to be $500,000. The MARR is 15%. Conduct a sensitivity analysis based on the given information a) Calculate the AW of the Base case based on above given data. (Do not use PW or FW) (2 point] b) Calculate the AW for the range of -10% to +12% for initial cost. (Do not use PW or FW) [4 point) c) Calculate the AW for the range of -8% to +10% for annual revenue. (Do not use PW or FW) [4 points) d) Prepare a tabular distribution by using AW as the Figure of Merit (FoM). [5 points) Parameter % Change in Parameter Value FOM (AW) Deviation from base % Deviation from base Initial Cost Upper limit Base Case Lower limit Annual Revenue Upper limit Base Case Lower limit 1) Prepare a sensitivity graph comparing the percentage of change in parameter from the base case and the respective AW. [4 points) ******* 4.3 The Comet Transportation Company is planning to buy a new fleet of trucks requiring an initial investment of $5,000,000, and $12,000,000 annually to maintain and operate. The expected life of the new fleet is 5 years. The revenue is estimated to be $15,000,000 per year and the salvage value is expected to be $500,000. The MARR is 15%. Conduct a sensitivity analysis based on the given information a) Calculate the AW of the Base case based on above given data. (Do not use PW or FW) (2 point] b) Calculate the AW for the range of -10% to +12% for initial cost. (Do not use PW or FW) [4 point) c) Calculate the AW for the range of -8% to +10% for annual revenue. (Do not use PW or FW) [4 points) d) Prepare a tabular distribution by using AW as the Figure of Merit (FoM). [5 points) Parameter % Change in Parameter Value FOM (AW) Deviation from base % Deviation from base Initial Cost Upper limit Base Case Lower limit Annual Revenue Upper limit Base Case Lower limit 1) Prepare a sensitivity graph comparing the percentage of change in parameter from the base case and the respective AW. [4 points) ******* Step by Step Solution
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