Question
PMCC Pharmaceuticals needs to raise money to build a new lab for new anti-cancer drug. The following table lists 4 critical input variables for the
PMCC Pharmaceuticals needs to raise money to build a new lab for new anti-cancer drug. The following table lists 4 critical input variables for the financial analysis and the associated values in the base case:
]
Input | Base Case |
Building Cost | $6,500,000 |
Equipment Cost | $1,200,000 |
Annual Revenue | $8,600,000 |
Annual O&M Costs | $4,500,000 |
With a MARR of 10% and a project life of 10 years, perform a sensitivity analysis on the data using PW as the assessment metric. For each input, consider deviation of -20%, -15%, -10%, -5%, 0, 5%, 10%, 15%, 20% from the base case.
-
For each deviation of each input, calculate PW and present the result in tabular format
as in Table 12.2 in lecture 11. (8 points)
-
Plot the sensitivity graph. (5 points)
-
Which input has the biggest impact on the PW? (2 point)
Finf NPW for all the 4 that is building cost, equipement cost, annual revenue, annual O&M cost
Plesae solve asap. Urgently
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