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Investment $125,000 Units sold per year 2000 units Selling price per un $50 Cost per unit $10 MV S40000 Study period 5 years MACRS-GDS 5

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Investment $125,000 Units sold per year 2000 units Selling price per un $50 Cost per unit $10 MV S40000 Study period 5 years MACRS-GDS 5 years Tax BTMARR 40% 15% LO Solve the following questions 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 Investment $125,000 Units sold per year 2000 units Selling price per un $50 Cost per unit $10 MV S40000 Study period 5 years MACRS-GDS 5 years Tax BTMARR 40% 15% LO Solve the following questions 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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