Question: (4 points) If a certain project has a negative AW. The sensitivity (x=?) for annual expenses will be: Select one: a. None b. Negative e.


(4 points) If a certain project has a negative AW. The sensitivity (x=?) for annual expenses will be: Select one: a. None b. Negative e. Both d. Positive e. We do not have enough information to decide Give your reasons (4 points) Consider the following plot and data: (R-E Initial Investment Useful Life SO $2.000 + $1,000 Y-Axis PW(12) 4-60 0 -30% -20 -10% 10% 20% ($1.000) (52.000) X A (Percent Change in Parameter) MARR 12% per year Useful life Initial investment $5,000 Receipts-Expenses (R-E) $1,500/year 5 years If the initial investment is increased by more than 10%, the project is profitable: Select one: a. Not true b. We do not have enough information to decide c. None d. True e. Both options Give your reasons (4 points) If a certain project has a sensitivity of x=0.20 for Initial Investment. What was the original decision of the project? Select one: a. We do not have enough information to decide b. None c. Both O d. Reject O e. Accept Give your reasons
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