Question: (15 points) A new device is being purchase for a certain project in a local community. The following financial parameters have been estimated 5. Initial


(15 points) A new device is being purchase for a certain project in a local community. The following financial parameters have been estimated 5. Initial cost Annual savings (AS) Useful life (N) Salvage value (end of 10 years) 30.000 $100,000 $20,000 10 years MARR (annual) 10% There is considerable uncertainty surrounding the estimates of annual savings +25%, and useful life-7 years to 12 years. a) Construct the best and worst scenarios between-20% and b) Draw a spider plot (PW vs. %), and conclude whether any of the two is sensitive, and which of the two is more sensitive. First compute the following: (Interest Table for 10% is given Nominal PW--100K+ 30K"(PF, 10%, 10) +20K"(PIA, 1090, 10) -S34458 Pw(AS-80% )=-100K +30K"(P/F, 10%, 10)+16K"( PA, 10%10) -S9.879 Pw(AS-125%-100K +30K"(P F. 10%, 10)+25K"(P A, 10%, 10)-S65180 PW(N=70%)--100K+30K"(P/F,10%,-)+20K"(P/A, 10%.-_-) PW(N-I 20% )--100K+30K"(P/F, 10%,-)+20K*( P/A,10%,-) Then draw the spider plot and determine whether () PW is sensitive to cither parametera decision is sensitive to either parameter
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