Question: VTEPS, Inc. is looking to make a significant capital investment to install a new production line to manufacture your BRG. Recreate the following chart and

VTEPS, Inc. is looking to make a significant capital investment to install a new production line to manufacture your BRG.

Recreate the following chart and graph in Excel:


Sensitivity Analysis Equipment System Upgrade Most Likely Values Capital Investment Annual Savings 500,000 S Annual Maintenance 100,000 Useful Life (years) MARR Change in Factor Capital Investment Annual Savings Annual Maintenance Useful Life (years) -40% -30% -20% -109% 10% 2006 30% 40% Spider Plot $800,000 $600,000 $400,000 Capital Investment $200,000 Annual savings Annual Maintenance $(200,000) Useful Life (years) $(400,000) $(600,000) -60% -40% -20% 0% 20% 40% 60%

 

Sensitivity Analysis Equipment System Upgrade Most Likely Values Capital Investment $ Annual Savings Annual Maintenance $ Useful Life (years) 1,300,000 500,000 100,000 MARR 12% Capital Investment Annual Savings Annual Maintenance Useful Life (years) -40% -30% % Change in Factor -20% -10% 0% 10% 20% 30% 40% Spider Plot $800,000 $600,000 $400,000 -Capital Investment $200,000 Annual Savings $- Annual Maintenance $(200,000) Useful Life (years) $(400,000) $(600,000) -60% -40% -20% 0% 20% 40% 60%

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