Please Answer My Questions Economics no 3  In 30-35 Minutes as u know from the sub parts A,B,C..... And send u get Answer please thank u

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Please Answer My Questions Economics no 3  In 30-35 Minutes as u know from the sub parts A,B,C..... And send u get Answer please thank u

3. A company plans to provide a special parking space for its
employees. There are 2 alternatives being considered to build the
parking lot.
The first alternative is relatively simple and only requires an initial cost
of IDR. 10,000,000, and is estimated to be only 3 years old.
Expenditure for maintenance is estimated at IDR 2,000,000 per year.
The second alternative is relatively more sophisticated and can make
the parking lot 12 years old and the maintenance costs can be ignored,
the initial cost is IDR 30,000,000, it just needs to repaint the parking
signs every 2 years at a fee of IDR 1,000,000 each time ,-.
If the company's MARR is 15%, determine:
A. Alternative parking lot development that should be chosen by
the company
B. Perform a sensitivity analysis on the above cost parameters and
determine the breakeven condition. Explain your answer
C. Explain the importance/purpose of a sensitivity analysis and
break-even point
Transcribed Image Text:3. A company plans to provide a special parking space for its employees. There are 2 alternatives being considered to build the parking lot. The first alternative is relatively simple and only requires an initial cost of IDR. 10,000,000, and is estimated to be only 3 years old. Expenditure for maintenance is estimated at IDR 2,000,000 per year. The second alternative is relatively more sophisticated and can make the parking lot 12 years old and the maintenance costs can be ignored, the initial cost is IDR 30,000,000, it just needs to repaint the parking signs every 2 years at a fee of IDR 1,000,000 each time ,-. If the company's MARR is 15%, determine: A. Alternative parking lot development that should be chosen by the company B. Perform a sensitivity analysis on the above cost parameters and determine the breakeven condition. Explain your answer C. Explain the importance/purpose of a sensitivity analysis and break-even point
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