9 6. Consider the following estimated cash flows for a project under consideration.$585,000$187,500$50,800Investment costAnnual revenuesAnnual expensesUpgrade cost every 5 years (@5, 10, and 15)Salvage value at end of year 20$150,000$300,000The company MARR = 15% and the study period is 20 years.Determine % changeto decision reversal for annual revenues and investment cost. To which factor is thedecision more sensitive and how do you know?

Net present value is referred to as the value of all the future cash flows at period zero to be…

6. Consider the following estimated cash flows for a project under consideration. $585,000 $187,500 $50,800 $150,000 $300,000 Investment cost Annual revenues Annual expenses Upgrade cost every 5 years (@ 5, 10, and 15) Salvage value at end of year 20 The company MARR = 15% and the study period is 20 years. Determine % change to decision reversal for annual revenues and investment cost. To which factor is the decision more sensitive and how do you know?