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PLEASE SOLVE ON EXCEL OR MANUALLY Question 3 (30 points): Big City Carl, a local politician, is pushing a new dock and pier system at

image text in transcribed PLEASE SOLVE ON EXCEL OR MANUALLY

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)

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