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Conduct the following sensitivity analysis, using the project s ANNUAL WORTH. Create a table where you vary the following variables, one at a time: the
Conduct the following sensitivity analysis, using the projects ANNUAL WORTH. Create a table where you
vary the following variables, one at a time: the contribution margin per unit, the annual number of units sold,
the annual fixed cost, and the machines salvage value at the end of the project. Create a table, starting with
a Percent Change in its first column, with the following values:
and Follow with each variable and an Annual Worth column, corresponding to each of the
variables you vary. You can use the Excel example file posted under Week as your guide your tables and
set up will be slightly different, but similar Vary each of the variables ranging from to one at a
time, while keeping all of the other variables at their baseline values, recomputing the projects annual
worth each time. Insert a chart with the percent change on the horizontal axis, and the contribution margin,
number of units, fixed cost, and salvage value on the vertical axis. Comment on the sensitivity of the projects
annual worth to changes in each of the four variables, and the implications for accepting or rejecting the
project.
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