Exercise 1 The managers of a Satellite Company are considering an investment with the following estimated cash flows. The MARR is 15% per year. Capital investments (now) $ 35,000 Annual profits $ 15,000 Salvage value (at end of useful life) $1,000 Useful life 5 years The company is inclined to make the investment; however, the managers are nervous because all of the cash flows and the useful life are approximate values. The capital investment is known to vary within +/- 10%. The annual profits, market value, and useful life estimates are known to change within +/-20%. 1. Analyze the sensitivity of PW to changes in each estimate independently (assuming other estimates remain at their base case). Based on your results, make a recommendation regarding whether or not they should proceed with this project. 2- The company can perform market research and/or collect more data to improve the accuracy of these estimates. Rank these variables by ordering them in accordance with the need of more accurate estimates (from highest to lowest need)