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I need a detailed solutions please! For the below question select the correct answer by using plot and data, and explain your reasoning behind your
I need a detailed solutions please! For the below question select the correct answer by using plot and data, and explain your reasoning behind your selection. (R-E) Useful Life Investment Initial $3,000 $2,000 $1.000 Y-Axis, PW (12%) -30% -20% -10% 04. 10% 20% 30% 40% ($1,000) ($2,000) X-Axis (Percent Change in Parameter) MARR 12% per year Useful life 5 years Initial investment $5,000 Receipts-Expenses (R E) $1,500/year 2.1. (4 points) If the initial investment is decreased by more than 10%, the project is profitable. Why? Explain with your own words. a) True b) False 2.2. (4 points) If the profit (R - E) is decreased to $1350, this project is not profitable. Why? Explain with your own words. a) True b) False 2.3. (4 points) If the useful life of decreased to 4 years, this project is profitable. Why? Explain with your own words. a) True b) False 2.4. (4 points) Project is less sensitive to change in profit(R-E) than change in useful life. Why? Explain with your own words. a) True b) False 2.5. (4 points) An initial investment of $6,000 is profitable. Why? Explain with your own words a) True b) False
I need a detailed solutions please!
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