Question
The breakeven (NPW=$0) MARR of the project is between options: 12.0 and 12.5% 12.7 and 13.2% 13.4 and 13.9% 14.2 and 14.7% - You are
The breakeven (NPW=$0) MARR of the project is between
options:
12.0 and 12.5%
12.7 and 13.2%
13.4 and 13.9%
14.2 and 14.7%
-
You are asked to perform a scenario analysis instead of a sensitivity analysis. Assume that the values of the three scenarios (optimistic, most probable and pessimistic) are to be populated from the NPW dollar values of the sensitivity table which you completed above. The dollar value of the project's annual operating revenue (AOR) for the optimistic scenario would be
options:
0
600,000(1.15)
600,000
600,000(0.85)
-
You are asked to perform a scenario analysis instead of a sensitivity analysis. Assume that the values of the three scenarios (optimistic, most probable and pessimistic) are to be populated from the NPW dollar values of the sensitivity table which you completed above. The project's MARR for the optimistic scenario would be
options:
10%(0.85)
10%
10%(1.15)
105(0)
PLEASE GIVE ME THE ANSWER
1. Initial Cost (P) = $960,000 2. Salvage value (SV) = $12,133 3. Annual operating revenues (AOR) = $600,000 4. Annual operating costs (AOC) = $325,000 5. Economic life (N) = 5 years 6. MARR = 10% 7. Inflation Rate = 0%. One-way Sensitivity Table Net Present Worth (NPW) Parameters -15% -10% -5% +5% +10% +15% Reference Scenario BB P AA CC AOR DD EE AOC FF GG HH SV II JJ KK N LL MM MARR NN oo PPStep by Step Solution
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