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Very confused with this problem, Please Help! You are to conduct an extensive sensitivity analysis on the problem described below. The sensitivity approach will consist
Very confused with this problem, Please Help!
You are to conduct an extensive sensitivity analysis on the problem described below. The sensitivity approach will consist of two parts (a) A range approach where the most optimistic, most likely, and most pessimistic values of the dependent variables N PV and IRR are determined. (b) A range approach where the mean value is determined for each independent variable and then each variable is allowed to vary 20% about that mean while all other independent variables are held constant. Create spider plots for NPV and IRR usingg the recsults, The project life is 7 years and the MARR is 15%. The initial investment is given by a uniform distribution between $200,000 and $300,000 The annual profit is given by a triangular distribution that has a minimum value of vear, a mode of 367 ear, and a maximum valuc o car The salvage valuc of the investment is given by a triangular distribution that has a minimum value of $60,000, a mode of 75,000, and a maximum value of $85,000Step by Step Solution
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