Plot a sensitivity graph for annual worth versus initial cost, annual revenue, and salvage value for the data below. Vary only one parameter at a time, each within the range of -20% to +20%. MARR is 3%/year. Project life is 4 years. Based on your graph, which parameter shows the MOST sensitivity? Initial Cost: $120,000 - Annual Revenue: $25.000 - Salvage Value: $35,000 Cannot be determined O Annual Revenue O Initial Cost O Salvage Value
Plot a sensitivity graph for annual worth versus initial cost, annual revenue, and salvage value for the data below. Vary only one parameter at a time, each within the range of -20% to +20%. MARR is 3%/year. Project life is 4 years. Based on your graph, which parameter shows the MOST sensitivity? Initial Cost: $120,000 - Annual Revenue: $25.000 - Salvage Value: $35,000 Cannot be determined O Annual Revenue O Initial Cost O Salvage Value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Plot a sensitivity graph for annual worth versus initial cost, annual revenue, and salvage value for the data below. Vary only one
parameter at a time, each within the range of -20% to +20%. MARR is 3%/year. Project life is 4 years. Based on your graph, which
parameter shows the MOST sensitivity? Initial Cost: $120,000- Annual Revenue: $25,000 - Salvage Value: $35,000
O Cannot be determined
O Annual Revenue
O Initial Cost
O Salvage Value
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