Question 3 (35 points) You are the general manager of Al-Aswa company. The MARR is 7% per year. You are willing to implement the project, but the investors are nervous because all of these cash flows are approximated values. Capital investment $31000 Annual revenues from sales $19000 Annual revenues from savings 1500 Annual expenses $6000 Disposal cost $1100 Useful life 7 years Instructions: Use 4 digits in your calculations and reporting the answers. Do not write commas or apostrophes. Do not write $ (dollar sign) or any other symbol, just write the number. Answer the following questions: a. Calculate the AW of the project with the given estimates. (10 points) AW= b. Perform a sensitivity analysis for the breakeven point based on the revenues from sales and write the result in percentage to increase/decrease the original value. (15 points) X= C. If the initial investment was overestimated by -38%, would it still be a good investment? (10points) 7% 7% Sinking Fund Factor Find A Given F A/F Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P F/A Present Worth Factor Find P Given A P/A n 0.483 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P P/F 1.070 9346 1.145 -8734 1.225 .8163 1.311 .7629 1.403 .7130 1.501 .6663 1.606 6227 1.718 5820 1.838 5439 1.967 5083 2.105 4751 2.252 4440 2.410 .4150 2579 .3878 2.759 -3624 2.952 3387 3.159 .3166 3.380 .2959 3.617 2765 3.870 2584 4.141 .2415 4.430 2257 4.741 2109 5.072 .1971 5.427 1842 5.807 1722 6.214 .1609 6.649 .1504 7.114 1406 7.612 1314 8.145 .1228 8.715 .1147 9.325 1072 9.978 -1002 10.677 .0937 14.974 0668 21.002 .0476 29.457 .0339 41.315 0242 57.947 0173 81.273 0123 113.990 00877 159.877 224.235 004-46 314.502 00318 441.105 .00227 618.673 .00162 867.720 00115 1.0000 4831 3111 2252 .1739 .1398 1156 0975 0835 0724 .0634 .0559 .0497 0443 .0398 0359 0324 .0294 0268 .0244 0223 ,0204 0187 0172 0158 .0146 0134 0124 .0114 0106 00980 .00907 .00841 .00780 400723 00501 .00350 00246 00174 00123 1.00087 0X62 .00044 .00031 00022 00016 00011 00008 1.0700 5531 3811 2952 2439 2098 .1856 .1675 1535 1424 .1334 1259 .1197 1143 .1098 1059 .1024 .0994 ,0968 0944 0923 0904 0887 0872 0858 0846 0834 0824 .0814 0806 0798 .0791 0784 .0778 0772 0750 0735 0725 0717 0712 0709 0706 0704 0703 0702 0702 0701 0701 1.000 2.070 3.215 4.440 5.751 7.153 8.654 10.260 11.978 13.816 15.784 17.888 20.141 22.551 25.129 27.888 30.840 33.999 37.379 40.996 44.865 49.006 53.436 58.177 63.249 68.677 74.484 80.698 87.347 94.461 102.073 110.218 118.934 128.259 138.237 199.636 285.750 406.530 575.930 813523 1 146.8 1614.1 2 269.7 3.189.1 44786 6 287.2 8823.9 12 3817 0.935 1.808 2.624 3.387 4.100 4.767 5.389 5.971 6.515 7,024 7.499 7.943 8.358 8.745 9.108 9.447 9.763 10.059 10.336 10.594 10.836 11.061 11.272 11.469 11.654 11.826 11.987 12.137 12.278 12.409 12.532 12.647 12.754 12.854 12.948 13.332 13.606 13.801 13.940 14.039 14.110 14.160 14.196 14.222 14.240 14.253 14.263 14.269 Arithmetic Gradient Gradient Gradient Uniform Present Series Worth Find A Find P Given G Given G A/G P/G n 0 0 1 0.873 2 0.955 2.506 3 1.416 4.795 4 1.865 7.647 5 2.303 10.978 6 2.730 14.715 7 3.147 18.789 8 3.552 23.140 9 3.946 27.716 10 4.330 32.467 11 4.703 37.351 12 5.065 42.330 13 5.417 47.372 14 5.758 52.446 15 6090 57.527 16 6.411 62.592 17 6,722 67.622 18 7.024 72599 19 7.316 77.509 20 7.599 82.339 21 7.872 87.079 22 8.137 91.720 23 8.392 96.255 24 8.639 100.677 25 8.877 104.981 26 9.107 109.166 27 9.329 113.227 28 9.543 117.162 29 9.749 120.972 30 9.947 124.655 31 10.138 128 212 32 10.322 131.644 33 10.499 134.951 34 10.669 138.135 35 11.423 152.293 40 12.036 163.756 45 12.529 172.905 50 12.921 180.124 55 13.232 183.768 60 13.476 190.145 65 13.666 193.519 70 13 814 196,104 75 13.927 198.075 80 14.015 199 572 85 14.081 200.704 90 14.132 201.558 95 14.170 202 200 100 00625
