Consider the following sensitivity analysis results: Single Factor being Changed Original Estimate Breakeven Value Investment cost $200,000 $230,000 Annual revenue $750,000 $660,000 Annual expenses $500,000 $550,000 Order the factors from most sensitive to least sensitive. Investment Cost least sensitive Annual revenue most sensitive Annual expenses in the middle

Consider the following sensitivity analysis results: Single Factor being Changed Original Estimate Breakeven Value Investment cost $200,000 $230,000 Annual revenue $750,000 $660,000 Annual expenses $500,000 $550,000 Order the factors from most sensitive to least sensitive. Investment Cost least sensitive Annual revenue most sensitive Annual expenses in the middle

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the following sensitivity analysis results:
Original Estimate
$200,000
Single Factor being Changed
Breakeven Value
$230,000
Investment cost
Annual revenue
$750,000
$660,000
Annual expenses
$500,000
$550,000
Order the factors from most sensitive to least sensitive.
Investment Cost
least sensitive
Annual revenue
most sensitive
Annual expenses
in the middle

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