Question
Please solve manually or on excel. Big City Carl, a local politician, is pushing a new dock and pier system at the river to attract
Please solve manually or on excel.
Big City Carl, a local politician, is pushing a new dock and pier system at the river to attract new commerce to the city. A committee appointed by the mayor (an opponent of Carl) has developed the following estimates. Inputs variables for the financial analysis and the associated limits of uncertainty:
Input | Base Case |
Initial building cost | $8,000,000 |
Initial equipment cost | $3,500,000 |
Annual benefits | $7,000,000 |
Annual O&M cost | $2,500,0 |
With a MARR of 8% and a project life of 5 years, perform a sensitivity analysis on the data using PW as the assessment metric. For each input, consider deviation of -20%, -15%, - 10%, 0%, 5%, 10%, 15%, 20% from the base case.
-
For each deviation of each input, calculate PW and show the result as a table similar to Table 12.2 in the lecture. (15 points)
-
Show the sensitivity graph. (10 points)
-
Which input has the biggest impact on the PW? (5 point)
Please solve manually or on excel.
Please solve manually or on excel.
Please solve manually or on excel.
Question 3 (30 points): Big City Carl, a local politician, is pushing a new dock and pier system at the river to attract new commerce to the city. A committee appointed by the mayor (an opponent of Carl) has developed the following estimates. Inputs variables for the financial analysis and the associated limits of uncertainty: Input Base Case Initial building cost $8,000,000 Initial equipment cost $3,500,000 Annual benefits $7,000,000 Annual O&M cost $2,500,000 With a MARR of 8% and a project life of 5 years, perform a sensitivity analysis on the data using PW as the assessment metric. For each input, consider deviation of -20%, -15%, - 10%, 0%, 5%, 10%, 15%, 20% from the base case. a. For each deviation of each input, calculate PW and show the result as a table similar to Table 12.2 in the lecture. (15 points) b. Show the sensitivity graph. (10 points) c. Which input has the biggest impact on the PW? (5 point) Question 3 (30 points): Big City Carl, a local politician, is pushing a new dock and pier system at the river to attract new commerce to the city. A committee appointed by the mayor (an opponent of Carl) has developed the following estimates. Inputs variables for the financial analysis and the associated limits of uncertainty: Input Base Case Initial building cost $8,000,000 Initial equipment cost $3,500,000 Annual benefits $7,000,000 Annual O&M cost $2,500,000 With a MARR of 8% and a project life of 5 years, perform a sensitivity analysis on the data using PW as the assessment metric. For each input, consider deviation of -20%, -15%, - 10%, 0%, 5%, 10%, 15%, 20% from the base case. a. For each deviation of each input, calculate PW and show the result as a table similar to Table 12.2 in the lecture. (15 points) b. Show the sensitivity graph. (10 points) c. Which input has the biggest impact on the PW? (5 point)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started