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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
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)Step by Step Solution
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