Question: ( 4 0 points ) Calculate the after taxes net income and net cash flow for each option over the 1 0 - year horizon.

(40 points) Calculate the after taxes net income and net cash flow for each option over the 10-
year horizon. Companys marginal tax rate is 25%.
2.(10 points) Given BC's Minimum Attractive Rate of Return (MARR) of 12%, determine which
option would be preferable based on Net Present Worth (NPW) analysis.
Use option M3 to answer the following questions.
3.(30 points) Perform a sensitive analysis on +/-20% changes (-20%,-15%,...,0%,...,15%,
20%) in initial investment, unit price, unit material cost, maintenance cost, and salvage.
4.(10 points) Compute the break-even points of the variables which the project is very and
moderate sensitive to.
5.(10 points) Write a short conclusion about the sensitivity analysis and the break-even point
analysis.

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