Question: 2. (30% Marks) Project ABC has a high risk has a high investment but higher returns. Should it be selected with the new data? Project

 2. (30% Marks) Project ABC has a high risk has a

2. (30% Marks) Project ABC has a high risk has a high investment but higher returns. Should it be selected with the new data? Project ABC Net Investment ($) Total Revenues ($) Total Costs ($) Net Revenues ($) MARR (%) Project Life (years) R (Risky Project) 225,000 90,000 25,000 65,000 (a) What is the present worth of the project? (b) Do a sensitivity analysis by varying the project life for 3, 5, and 7 years. (c) Do a sensitivity analysis by varying the MARR from 5, 15, and 25%

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