Question: B. Problem Statement (30 questions) . Business is thriving and, as a result, the Soho Paving Company is contemplating the purchase of additional landscaping equipment.


B. Problem Statement (30 questions) . Business is thriving and, as a result, the Soho Paving Company is contemplating the purchase of additional landscaping equipment. While the Company has done the necessary due diligence, it is doubtful that the investment would perform exactly as projected by the dealership consultant Due to lingering uncertainty, you have been mandated by the Company to perform a one-way sensitivity analysis your potential purchase. The current "best" guesses for the project parameters are: . 1. Initial Cost (P) = $960,000 2. Salvage value (SV) = $12,133 3. Annual operating revenues (AOR) = $600,000 4. Annual operating costs (AOC) = $325,000 5. Economic life (N) = 5 years 6. MARR = 10% 7. Inflation Rate = 0%. 2 One-way Sensitivity Table Net Present Worth (NPW) Parameters -15% -10% -5% +5% +10% +15% Reference Scenario P AA BB AOR DD EE AOC FF GG HH SV II JJ KK N LL MM MARR NN 00 PP 1. The dollar value of cell AA is 2. The dollar value of cell BB is 1. The dollar value of cell AA is 2. The dollar value of cell BB is 3. The dollar value of cell CC is 4. The dollar value of cell DD is 5. The dollar value of cell EE is 6. The dollar value of cell FF is 7. The dollar value of cell GG is
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
