The estimated cash flows of an investment project are shown below.

Item Estimated Cash Flows Sensitivity Range

Initial investment, $ 55,000 5%

Annual revenue, $ 7000 10%

Annual expense, $ 4500 10%

Market value, $ 1800 15%

Project life, years 8 5%

Using an interest rate of 2% per year, analyze the sensitivity of the PW to changes in

initial investment and annual revenue, and determine the breakeven percentage

changes of these two factors.