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The town of Smallville, the government wants to build a junkyard to service all close districts in the area. The MARR is 7% per year.

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The town of Smallville, the government wants to build a junkyard to service all close districts in the area. The MARR is 7% per year. The committee in charge is willing to make the investment but the state officials are nervous because all of the cash flows are approximated values. Capital investment$ 37000 Annual revenues $18000 Annual expenses $6000 Disposal cost $900 Useful life years Instructions: Use 4 digits in your calculations and reporting the answers. Do not write commas or apostrophes. Do not write $ dollar sign) or any other symbol, just write the number. Answer the following questions: a. Calculate the AW of the project with the most likely estimates. (20 points) AW= b. Perform a sensitivity analysis on the capital investment (write the digit version, not in percentage). (15 points) X= c. If the capital investment was underestimated by 104%, would it still be a good investment? (5 points) d. Perform a sensitivity analysis on annual revenues (write the digit version, not in percentage). (15 points) X= e. If the annual revenues were overestimated by 47%, would it still be a good investment? (5 points)

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