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This spider plot is for a factory of accessories. Answer the questions based on the plot. (CAPEX is the initial cost, and OPEX is the
This spider plot is for a factory of accessories. Answer the questions based on the plot. (CAPEX is the initial cost, and OPEX is the annual operating cost) Sensitivity of NPV 700 600 500 400 300 200 -Gold Price NPV (in $millions) -Silver Price -CAPEX 100 0 OPEX -20% -15% -10% -5% 5% 10% Base Case 15% 20% -Sales Volume Input Variation a) The project's Present Worth is most sensitive to which of the five shown parameters? How did you know? b) With all other parameters constant, can the project achieve the MARR if the OPEX rises by 20%? How did you know? c) With all other parameters constant, can the project achieve the MARR if the sales volume decrease by 20%? How did you know? d) If no sensitivity analysis is done, what will be the reported Present Worth of the Project? How did you know? This spider plot is for a factory of accessories. Answer the questions based on the plot. (CAPEX is the initial cost, and OPEX is the annual operating cost) Sensitivity of NPV 700 600 500 400 300 200 -Gold Price NPV (in $millions) -Silver Price -CAPEX 100 0 OPEX -20% -15% -10% -5% 5% 10% Base Case 15% 20% -Sales Volume Input Variation a) The project's Present Worth is most sensitive to which of the five shown parameters? How did you know? b) With all other parameters constant, can the project achieve the MARR if the OPEX rises by 20%? How did you know? c) With all other parameters constant, can the project achieve the MARR if the sales volume decrease by 20%? How did you know? d) If no sensitivity analysis is done, what will be the reported Present Worth of the Project? How did you know
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