Raleigh Medical Clinic is considering acquiring $2$ new ultrasound machines for $$300,000.$ The clinic

estimates that the machines will have an economic life of $4$ years after which they will have zero salvage

value. The machines expects the two machines to generate net revenue of $$1,000,000$ per year and to

require $$900,000$ per year in fixed costs. The CCC of the clinic is $8$ percent. Conduct a sensitivity

analysis.

Step $1-$ Assemble the relevant data

System cost $$300,000$

Revenue $$100,000$

Fixed costs $$900,000$

CCC $8\%$

Step $2-$ Calculate the net cash flows $(000$s of dollars$)$

$01234$

System cost

Net revenue $$100,000$ $$100,000$ $$100,000$ $$100,000$

Fixed costs $$900,000$ $$900,000$ $$900,000$ $$900,000$

Net income $$300,000-$$$800,000-$$$800,000-$$$800,000-$$$800,000$

NPV$=$$$300,000+$$$100,000-$ $$900,000/(1+0\mathrm{.}08)^1+$ $$100,000-$ $$900,000/(1+0\mathrm{.}08)^2+$ $$100,000-$ $$900,000/(1+0\mathrm{.}08)^3+$ $$100,000-$ $$900,000/(1+0\mathrm{.}08)^4$

Step $3-$ Calculate net present value

NPV $$0\mathrm{.}00$

Step $4-$ Calculate the NPV with system cost at $-20,-10,0,+10,$ and $+20$ percent of expected

System cost: $$0\mathrm{.}00$ In cell C$32$ insert $"=$B$28"$

$-10\%$ $$0$ $$0\mathrm{.}00$ Select the range B$32$:C$37$

$-5\%$ $$0$ $$0\mathrm{.}00$ From the menu bar choose Data, What$-$if Analysis, Data Table.

$0\%$ $$0$ $$0\mathrm{.}00$ Row input cell: leave blank

$5\%$ $$0$ $$0\mathrm{.}00$ Column input cell: insert $=$B$15$

$10\%$ $$0$ $$0\mathrm{.}00$ Click OK

Step $5-$ Calculate the NPV with revenue at $-20,-10,0,+10,$ and $+20$ percent of expected

Net revenue: $$0\mathrm{.}00$ In cell C$41$ insert $"=$B$28"$

$-10\%$ $$0$ $$0\mathrm{.}00$ Select the range B$41$:C$46$

$-5\%$ $$0$ $$0\mathrm{.}00$ From the menu bar choose Data, What$-$if Analysis, Data Table.

$0\%$ $$0$ $$0\mathrm{.}00$ Row input cell: leave blank

$5\%$ $$0$ $$0\mathrm{.}00$ Column input cell: insert $=$B$16$

$10\%$ $$0$ $$0\mathrm{.}00$ Click OK

Step $6-$ Construct a table of data for graph

System cost Net revenue

$-10\%$ $$0\mathrm{.}00$ $$0\mathrm{.}00$

$-5\%$ $$0\mathrm{.}00$ $$0\mathrm{.}00$

$0\%$ $$0\mathrm{.}00$ $$0\mathrm{.}00$

$5\%$ $$0\mathrm{.}00$ $$0\mathrm{.}00$

$10\%$ $$0\mathrm{.}00$ $$0\mathrm{.}00$

Step $7-$ Create graph

Please show answer in excel step by step and please include table and graph!!!!