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For a new equipment, the initial investment is $20,000. The expected revenue per year is $10,000. The estimated life of the equipment is 10 years.

image text in transcribedFor a new equipment, the initial investment is $20,000. The expected revenue per year is $10,000. The estimated life of the equipment is 10 years. Cost of annual operating and maintenance is estimated to be $3,000 and at the end of 10 years, the machine may be sold at $1,500. MARR for this equipment is set 10% per --year.-Investigate PW over a range of 20%in the estimates for: i Capital investment ii. Annual net cash flow, and iii. Useful life Plot a diagram that summarizes the sensitivity of PW to the given percent deviation changes in each factor estimate.

b) For a new equipment, the initial investment is $20,000. The expected revenue per 122/3 year is $10,000. The estimated life of the equipment is 10 years. Cost of annual operating and maintenance is estimated to be $3,000 and at the end of 10 years, the machine may be sold at $1,500. MARR for this equipment is set 10% per year. Investigate PW over a range of +20%in the estimates for: i Capital investment ii. Annual net cash flow, and iii. Useful life 93 Plot a diagram that summarizes the sensitivity of PW to the given percent deviation changes in each factor estimate

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