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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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