1. Select the parameter to analyze. Assume independence with other parameters.
2. Select the probable range and increment.
3. Select the measure of worth.
4. Calculate the measure of worth values.
5. Interpret the results. Graph measure vs. parameter for better understanding.

For this activity, use your model from 5.5 Assignment: Mutually Exclusive Projects Model and perform a sensitivity analysis by changing the estimated savings for the second filter (Clean Air Filter). The savings are potentially an issue, and your experience with similar systems indicates the decrease in savings could range from $96 to $104 ($100 was previously modeled). Using 2 dollar increments, calculate the breakeven ROR (i*) for the incremental model. Generate a graph of decrease in annual savings for filter 2 (Clean Air Filter) vs. ROR. Identify the decrease in savings amount where the ROR = MARR. On the graph, identify the region where you would select Clean Air Filter and where you would select Sweet Air Filter.

Tab 1 should be as described above. Tab 2 should be a ready-to-use generic version of the model that can be used for similar analysis. Make sure your model includes instructions and clearly identifies where users would provide inputs.