Business operations details $.$ old plant and equipment $,$ current value $ $0,$remaining life $5$ years $,$variable costs $60\%$ of sales $,$leasing costs $ $280,000,$ operating costs $ $200,000,$ insurance $ $35,000,$ fully depreciated $,$ salvage value $ $0,$ salvage value if sold today $ $100,000.$ new plant and equipment : Acquisition cost $ $200,000,$ life $5$ years $,$varaible costs $55\%$ of sales $,$associated operating costs $ $120,000,$ annual depreciation $ $400,000,$ expected salvage value $ $400,000,$ accounting salvage value $ $0,$ income tax rate $30\%,$ estimated rate of return to be $10\%.$ inflation is $4\%.$ required sensitivity analysis at discount rates $10,12$ and $17\%.$ estimated sales both existing and new are as follows $.$ estimated sales with existing fleet in millions are $5,5,6,6\mathrm{.}7,6\mathrm{.}5$ and $6\mathrm{.}3.$ with new fleet are $7\mathrm{.}2,7\mathrm{.}5,8,8$ &$8$ million $.$ support the management in decision making