Use the sensitivity graph below to determine which of the following statements is most accurate. PW -40 -30 -20 $60,000 $50,000 $40.000 $30,000 18* $20,000 $10,000 SO -10 -$10,000 -$20.000 0 10 Percentage Change 20 30 40 -MARR Initial Investment Annual Savings a. If I can only concentrate on getting the best forecasts of one variable, it should be Annual Savings because it has the largest positive slope. b. If I think that my estimates of these three variables are likely only accurate to within +30%, my project should still be viable. c. The project is most sensitive to Initial Investment. d. Making sure I have a good estimate of MARR is extremely important in planning this project.
Use the sensitivity graph below to determine which of the following statements is most accurate. PW -40 -30 -20 $60,000 $50,000 $40.000 $30,000 18* $20,000 $10,000 SO -10 -$10,000 -$20.000 0 10 Percentage Change 20 30 40 -MARR Initial Investment Annual Savings a. If I can only concentrate on getting the best forecasts of one variable, it should be Annual Savings because it has the largest positive slope. b. If I think that my estimates of these three variables are likely only accurate to within +30%, my project should still be viable. c. The project is most sensitive to Initial Investment. d. Making sure I have a good estimate of MARR is extremely important in planning this project.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Transcribed Image Text:Use the sensitivity graph below to determine which of the following statements is most
accurate.
PW
-40 -30 -20
$60,000
$50,000
$40.000
$30,000
$20,000
$10,000
SO
-10
-$10,000
-$20.000
0
10
Percentage Change
20
30
40
MARR
--Initial Investment
Annual Savings
a.
If I can only concentrate on getting the best forecasts of one variable, it should be
Annual Savings because it has the largest positive slope.
b.
If I think that my estimates of these three variables are likely only accurate to
within +30%, my project should still be viable.
c. The
ject is most sensitive to Initial Investment.
d.
Making sure I have a good estimate of MARR is extremely important in planning
this project.
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