0 and 1. If a sensitivity analysis was performed by varying the purchase price, and the useful life (that is 2 factors) by + 20% each, how many PV calculations you have to make, and how many points you will plot for the sensitivity analysis. (You do not have to do the analysis, just show the formulae and the numbers)

Number of PV calculations? ___________, Number of points to plot on the sensitivity curve? _____________

Here is the problem I used.

1. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,300 and has an efficiency of 60%, an estimated life of 12 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,700 and has an efficiency of 70%, life of 10 years and maintenance cost of $25/year. Assume that the company internal rate of return is 16%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of $0.04 per kilowatt hour. Please plot your results. 1. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,300 and has an efficiency of 60%, an estimated life of 12 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,700 and has an efficiency of 70%, life of 10 years and maintenance cost of $25/year. Assume that the company internal rate of return is 16%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of $0.04 per kilowatt hour. Please plot your results