make%20up%20project.pdf +BIA Read aloud Draw . New equipment initial cost Annual Output (Demand) Selling price/unit Expenses Direct labor cost Materials cost Overhead cost Market value on disposal at end of year 6 Study period $95,000 17,000 units $3.5/unit $1.20/unit $1.35/unit $0.5/unit $15,000 6 years A company is trying to purchase a certain equipment for $100,000. the equipment is in the five-year property class and it will have a MV of 12,000 on disposal at year 5. this equipment will have an output of 1000 units, each unit will be sold for $5. total expenses will be $2.8 per unit The equipment will be depreciated under the MACRS-(GDS)-half year convention method, and it is in the seven-year property class. Before tax MARR=16%. The effective income tax rate is 35%. Part A: Calculate the present-worth of ATCF Part B: perform a sensitivity analysis for each of the following variables (selling price, demand, MARR, direct labor cost, material cost, overhead cost, market value and study period). Graphically (using a spider plot) investigate the sensitivity of the PW (BEFORE TAX and AFTER TAX) to changes in the above factors. Investigate changes over the interval 20%. II