A machine is estimated to cost Php70,000 to install at a little food kiosk. It is also expected to generate annual cash net income of Php15,000 for a projected 10 year lifetime. It also is expected to have a market value of Php15,000 at the end of its lifetime. The investment MARR is 15 % (before tax). We would like to determine if the machine an acceptable investment using Present Worth. There is a +/- 40% range of estimated costs on the four parameters: 1) Initial investment, 2) the annual receipts, 3) the probable salvage market value and 4) its 10 year lifetime. Create a spidergraph of the Present worths to show a sensitivity analysis of the machine investment if each of the four parameters are varied one parameter at a time while holding all other parameters at the estimated expected values.

A. If all the expected investment, annual receipts and salvage values were used as well as the 10 year estimated lifetime, what is the present worth of the machine at 15% MARR?

B. If the initial investment was off by +20% and was actually higher than expected, while all other things are expected to be the same, what is the present worth of the machine?