method on the cost of the equipment. The company expects to sell the equipment at the end of the terminal year. Question 1B: Conduct a sensitivity analysis for Optimistic and Pessimistic variations to Revenues and Operating Costs. Hint: You can either make changes directly to the input (green) area and copy the NPVs from Row 60 as hard coded values into the yellow area below, oR you can make copies of the base case worksheet and make changes to the components. Question 18 is worth 0.5 marks You can work out the percentage decrease from base case estimates, to enhance your discussions. Question 1C is worth 0.5 marks Question 1D: Discuss if your company should replace production equipment with Model A or Model B. Elaborate on your reasoning. Enter your discussions in the textbox provided. Frame your discussions as an investment recommendation. Your recommendation should be based on evaluating the capital budgeting metrics for both alternatives and considers your findings from your sensitivity and breakeven analysis. Minimum 150 words. Maximum 250 words. Question 10 is worth 1 mark method on the cost of the equipment. The company expects to sell the equipment at the end of the terminal year. Question 1B: Conduct a sensitivity analysis for Optimistic and Pessimistic variations to Revenues and Operating Costs. Hint: You can either make changes directly to the input (green) area and copy the NPVs from Row 60 as hard coded values into the yellow area below, oR you can make copies of the base case worksheet and make changes to the components. Question 18 is worth 0.5 marks You can work out the percentage decrease from base case estimates, to enhance your discussions. Question 1C is worth 0.5 marks Question 1D: Discuss if your company should replace production equipment with Model A or Model B. Elaborate on your reasoning. Enter your discussions in the textbox provided. Frame your discussions as an investment recommendation. Your recommendation should be based on evaluating the capital budgeting metrics for both alternatives and considers your findings from your sensitivity and breakeven analysis. Minimum 150 words. Maximum 250 words. Question 10 is worth 1 mark