Explain the calculations needed to obtain the answers in red from the information given.

Single Payment_ Equal Payment Series 1 2 3 4 5 6 7 8 9 10 Compound Amount Factor 1.2000 1.4400 1.7280 2.0736 2.4883 2.9860 3.5832 4.2998 5.1598 6.1917 Present Worth Factor 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 c] v Screen Shot 2023... Year n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Compound Amount Factor (F/A,i, N) 1.0000 2.2000 3.6400 5.3680 7.4416 9.9299 12.9159 16.4991 20.7989 25.9587 7 200% 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 Sinking Fund Factor (A/F,i, N) 1 .oooo 0.4545 0.2747 0.1863 0.1344 0.1007 0.0774 0.0606 0.0481 0.0385 10 200% 10.00 18.00 14.40 11.52 9.22 7.37 6.55' 6.55 6.56 6.55 3.28 Present Worth Factor 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 15 150% 5.00 9.50 8.55 7.70 6.93 6.23 5.90' 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 Capital Recovery Factor 1.2000 0.6545 0.4747 0.3863 0.3344 0.3007 0.2774 0.2606 0.2481 0.2385 20 150% 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 Burlington Motor Carriers, a trucking company, is considering the installation of a two-way mobile satellite messaging service on its 2,000 trucks. From tests done last year on 120 trucks, the company found that satellite messaging could cut 50% of its $6 million bill for long-distance communications with truck drivers. More importantly, the drivers who used this system reduced the number Of "deadhead" miles those driven without paying loads by 0.6%. Applying that improvement to all 230 million miles covered by the Burlington fleet each year would produce an extra $1.45 million in savings. Equipping all 2,000 trucks with the satellite hookup will require an investment of $6 million and the construction of a message-relaying system costing $1 million. The equipment and onboard devices will have a service life of eight years and negligible salvage value; they will be depreciated under the five-year MACRS class. Burlington's marginal tax rate is about 25%, and its required minimum attractive rate of return is 20%. Click the icon to view the MACRS depreciation schedules. Click the icon to view the interest factors for discrete compounding when i = 20% per year. (b) Perform a sensitivity analysis on the project's data, varying savings on the telephone bill and savings in deadhead miles. Assume that each of these variables can deviate from its base-case expected value by 10%, 20%, and 30%. (Enter your answers in millions. Round to four decimal places.) PW as a Function of Percent Deviation from the Most Likely Estimates, in millions Class Depreciation rate 3 200% 33.33 44.45 14.81 7.41 5 200% 20.00 32.00 19.20 11.52' 11.52 5.76 Key Input Variables -30% Savings in Telephone $ 4.3035* Bill Savings in Deadhead $ 5.641* Miles -20% $ 5.1669* $ 6.0590 -10% $ 6.0302 $ 6.4763 Base 0% $ 6.8936 $ 6.8936 + 10% $ 7.7570* $ 7.3109* $ 8.6203 $ 7.7282 + 30% $ 9.483* $ 8.1455* Single Payment_ Equal Payment Series 1 2 3 4 5 6 7 8 9 10 Compound Amount Factor 1.2000 1.4400 1.7280 2.0736 2.4883 2.9860 3.5832 4.2998 5.1598 6.1917 Present Worth Factor 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 c] v Screen Shot 2023... Year n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Compound Amount Factor (F/A,i, N) 1.0000 2.2000 3.6400 5.3680 7.4416 9.9299 12.9159 16.4991 20.7989 25.9587 7 200% 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 Sinking Fund Factor (A/F,i, N) 1 .oooo 0.4545 0.2747 0.1863 0.1344 0.1007 0.0774 0.0606 0.0481 0.0385 10 200% 10.00 18.00 14.40 11.52 9.22 7.37 6.55' 6.55 6.56 6.55 3.28 Present Worth Factor 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 15 150% 5.00 9.50 8.55 7.70 6.93 6.23 5.90' 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 Capital Recovery Factor 1.2000 0.6545 0.4747 0.3863 0.3344 0.3007 0.2774 0.2606 0.2481 0.2385 20 150% 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 Burlington Motor Carriers, a trucking company, is considering the installation of a two-way mobile satellite messaging service on its 2,000 trucks. From tests done last year on 120 trucks, the company found that satellite messaging could cut 50% of its $6 million bill for long-distance communications with truck drivers. More importantly, the drivers who used this system reduced the number Of "deadhead" miles those driven without paying loads by 0.6%. Applying that improvement to all 230 million miles covered by the Burlington fleet each year would produce an extra $1.45 million in savings. Equipping all 2,000 trucks with the satellite hookup will require an investment of $6 million and the construction of a message-relaying system costing $1 million. The equipment and onboard devices will have a service life of eight years and negligible salvage value; they will be depreciated under the five-year MACRS class. Burlington's marginal tax rate is about 25%, and its required minimum attractive rate of return is 20%. Click the icon to view the MACRS depreciation schedules. Click the icon to view the interest factors for discrete compounding when i = 20% per year. (b) Perform a sensitivity analysis on the project's data, varying savings on the telephone bill and savings in deadhead miles. Assume that each of these variables can deviate from its base-case expected value by 10%, 20%, and 30%. (Enter your answers in millions. Round to four decimal places.) PW as a Function of Percent Deviation from the Most Likely Estimates, in millions Class Depreciation rate 3 200% 33.33 44.45 14.81 7.41 5 200% 20.00 32.00 19.20 11.52' 11.52 5.76 Key Input Variables -30% Savings in Telephone $ 4.3035* Bill Savings in Deadhead $ 5.641* Miles -20% $ 5.1669* $ 6.0590 -10% $ 6.0302 $ 6.4763 Base 0% $ 6.8936 $ 6.8936 + 10% $ 7.7570* $ 7.3109* $ 8.6203 $ 7.7282 + 30% $ 9.483* $ 8.1455*