Initial estimates of the parameters for an investment are given below. You wish to do a multiparameter

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Initial estimates of the parameters for an investment are given below.

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You wish to do a multiparameter sensitivity analysis based on the sensitivities shown. AW is the preferred measure of worth.

a. How many values of AW need to be calculated?

b. Determine the AW values.

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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Question Posted: Apr 02, 2024 03:57 AM

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Initial estimates of the parameters for an investment are given below. You wish to do a multiparameter

Question:

Parameter Initial Investment Initial Estimate Sensitivity $15,000 None Net Annual Receipts $2,500 -30%, 0%, +30% Project Life 10 years -20%, 0%, +20% Salvage Value $500 -50%, 0%, +50% MARR 15% per year None

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Principles Of Engineering Economic Analysis

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