12% per year 5 years $5,000 MARR Useful life Initial investment Receipts-Expenses (R – E) $1,500/year Graph for Problems 11-35 to 11-39 Initial (R – E) Useful Life Investment $3,000 $2,000 $1,000 - so 40% -30% -20% -10% 0% 10% 20% 30% 40% ($1,000) ($2,000) X-Axis (Percent Change in Parameter) Y-Axis, PW(12%)
12% per year 5 years $5,000 MARR Useful life Initial investment Receipts-Expenses (R – E) $1,500/year Graph for Problems 11-35 to 11-39 Initial (R – E) Useful Life Investment $3,000 $2,000 $1,000 - so 40% -30% -20% -10% 0% 10% 20% 30% 40% ($1,000) ($2,000) X-Axis (Percent Change in Parameter) Y-Axis, PW(12%)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Answer the problems on the basis of the above graph and the most likely estimates given as follows: If the profit (R−E) is decreased by 5%, this project
is not profitable. (a) True (b) False.

Transcribed Image Text:12% per year
5 years
$5,000
MARR
Useful life
Initial investment
Receipts-Expenses (R – E) $1,500/year

Transcribed Image Text:Graph for Problems 11-35 to 11-39
Initial
(R – E)
Useful Life
Investment
$3,000
$2,000
$1,000 -
so
40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
($1,000)
($2,000)
X-Axis (Percent Change in Parameter)
Y-Axis, PW(12%)
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