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Part of your work you would like to assess a specific task, the following data are pertinent: Initial investment $5,000 Net annual revenues $1,500 MARR

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Part of your work you would like to assess a specific task, the following data are pertinent: Initial investment $5,000 Net annual revenues $1,500 MARR 12% per year Useful life 5 years The initial investment, net annual revenues, and MAAR are known to be within -40% to +40%. a) Analyze the sensitivity of PW to changes in each estimate individually. Based on your results, make a recommendation regarding whether or not you should proceed with this task. Graph your results for presentation to management (use Excel for the plot). (15 points) b) Calculate the breakeven deviation for each variable. (10 points) c) You can perform market research and/or collect more data to improve the accuracy of these estimates. Rank these variables by ordering them in accordance with the need for more accurate estimates (from the highest need to lowest need). (5 points) Part of your work you would like to assess a specific task, the following data are pertinent: Initial investment $5,000 Net annual revenues $1,500 MARR 12% per year Useful life 5 years The initial investment, net annual revenues, and MAAR are known to be within -40% to +40%. a) Analyze the sensitivity of PW to changes in each estimate individually. Based on your results, make a recommendation regarding whether or not you should proceed with this task. Graph your results for presentation to management (use Excel for the plot). (15 points) b) Calculate the breakeven deviation for each variable. (10 points) c) You can perform market research and/or collect more data to improve the accuracy of these estimates. Rank these variables by ordering them in accordance with the need for more accurate estimates (from the highest need to lowest need). (5 points)

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