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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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