The city of St. John's is intalling a new swimming pool in the east end recreation centre. One design being considered is a reinforced concrete pool that will cost $6,900,000 to install. Thereafter, the inner surface of the pool will need to be refinished and painted every 5 years at a cost of $300,000 per refinishing. Assuming that the pool will have essentially an infinite life, what is the present worth of the costs associated with the pool design? The city uses a MARR of 9%. If the installation costs, refinishing costs, and MARR are subject to 5% or 10% increases or decreases, how is the present worth affected?

All calculations are performed using 4 significant figures.

(a) Complete the table below:

Sensitivity Analysis Calculated Values

Parameter	-10%	-5%	Base Case	+5%	+10%
Construction Costs			6,900,000
Refinishing Costs			300,000
MARR [%]			9
Present worth of Costs	-10%	-5%	0%	+5%	+10%
Changes to Construction Costs			7.457E6
Changes to Refinishing Costs			7.457E6
Changes to MARR			7.457E6		[

(b) To which parameter (Construction Costs [CC], Refinishing Costs [RC], or MARR is the present worth of the project most sensitive?