Question
investment 125000$ Units sold per year 2000 units selling price per unit 50$ cost per unit 10$ MV 40000$ study period 5 years MACRS-GDS 5
investment | 125000$ |
Units sold per year | 2000 units |
selling price per unit | 50$ |
cost per unit | 10$ |
MV | 40000$ |
study period | 5 years |
MACRS-GDS | 5 years |
Tax | 40% |
BTMARR | 15% |
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 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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