Sensitivity analysis and break-even Example 8-3 posed the following situation. Thrce mutually exclusive alteratives are given, each with a 20-year life and no salvage value. The minimum attractive rate of return is 6%. Initial cost Uniform annual benefit $2000 410 B $4000 639 $5000 700 In Example 8-3 we found that Alt. B was the preferred alternative. Here we would like to know how sensitive the decision is to our estimate of the initial cost of B. If B is preferred at an initial cost of $4000, it will continue to be preferred at any smaller initial cost. But how much higher than $4000 can the initial cost be and still have the preferred alternative? The computations may be done several different ways. With neither input nor output fixed, maximizing net present worth is a suitable criterion