1) The sensitivity graph of a project is presented below: 70 60 Present Worth ('000 $) 50 40 30 SV 20 10 MARR B) SV C) FC D) VC E) O&M Base O&M FC VC -20% -15% -10% -5% 0% 5% 10% 15% 20% Deviation What is the most sensitive input of the project? A) MARR
1) The sensitivity graph of a project is presented below: 70 60 Present Worth ('000 $) 50 40 30 SV 20 10 MARR B) SV C) FC D) VC E) O&M Base O&M FC VC -20% -15% -10% -5% 0% 5% 10% 15% 20% Deviation What is the most sensitive input of the project? A) MARR
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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Question
![1) The sensitivity graph of a project is presented below:
70
60
Present Worth ('000 $)
50
40
30 SV
20
10
MARR
-20% -15% -10% -5%
C) FC
D) VC
E) O&M
Base
Deviation
What is the most sensitive input of the project?
A) MARR
B) SV
O&M
FC
VC
0% 5% 10% 15% 20%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3eb08de-e7fb-45ed-af40-db744a666675%2F1d196de4-51ab-497e-ad24-8f060629bf1a%2Fog6soum_processed.png&w=3840&q=75)
Transcribed Image Text:1) The sensitivity graph of a project is presented below:
70
60
Present Worth ('000 $)
50
40
30 SV
20
10
MARR
-20% -15% -10% -5%
C) FC
D) VC
E) O&M
Base
Deviation
What is the most sensitive input of the project?
A) MARR
B) SV
O&M
FC
VC
0% 5% 10% 15% 20%
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