Question
given investment 125000 dollars unit sold per year= 2000 units selling price per unit =50 dollars cost per unit= 10 dollars MV = 40000 dollars
given investment 125000 dollars
unit sold per year= 2000 units
selling price per unit =50
dollars cost per unit= 10 dollars
MV = 40000 dollars
study period = 5years
MACRS_GDS = 5 years
Tax = 40 percent
BTMARR = 15 percent
Part A: Calculate the present-worth of ATCF
Part B: perform a sensitivity analysis for each variable (unit price, demand, MARR). Graphically (using a spider plot) investigate the sensitivity of the PW (ATCF) to changes in the above factors. Investigate changes over the interval 20%.
Part C: To which variable is the project the most sensitive? Explain why and write your comments.
Part D: Consider that the PW is quite sensitive to changes in unit price. Determine the break-even PW as a function of that variable, and draw the graph that shows the point of breakeven
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