Question
Prepare a sensitivity analysis Spiderplot diagram for the following 5-year project. Plot the Present Worth with 10%, and 20% changes in Capital Investment, Annual
Prepare a sensitivity analysis Spiderplot diagram for the following 5-year project. Plot the Present Worth with 10%, and 20% changes in Capital Investment, Annual Cost and Annual Revenues. Capital Investment $200,000 Annual Cost $5,000 Annual Revenues $60,000 Project Life 5 years MARR (interest rate) 10% Reminder: the present worth of a future cash flow is P = $Future (1+(1+ i)n) Note: An Excel spreadsheet is provided to help with calculations.
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
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