The cash flow estimates for a project are shown below. The initial cost is believed to be
Question:
The cash flow estimates for a project are shown below. The initial cost is believed to be accurate, but the estimates of annual revenue and salvage value are subject to error. For a MARR of 3 percent/year, plot a two-factor sensitivity graph similar to Figure 13.5. Include a line that separates the favorable and unfavorable regions as well as a box showing the 20 percent error region. Project life is 4 years.
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Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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