Consider the following estimated cash flows for a project under consideration. $585,000 $187,500 $50,800 Investment cost...

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Consider the following estimated cash flows for a project under consideration. $585,000 $187,500 $50,800 Investment cost Annual revenues Annual expenses Upgrade cost every 5 years (@5, 10, and 15) Salvage value at end of year 20 $150,000 $300,000 The company MARR = 15% and the study period is 20 years. Determine % change to decision reversal for annual revenues and investment cost. To which factor is the decision more sensitive and how do you know? (15 points) Consider the following estimated cash flows for a project under consideration. $585,000 $187,500 $50,800 Investment cost Annual revenues Annual expenses Upgrade cost every 5 years (@5, 10, and 15) Salvage value at end of year 20 $150,000 $300,000 The company MARR = 15% and the study period is 20 years. Determine % change to decision reversal for annual revenues and investment cost. To which factor is the decision more sensitive and how do you know? (15 points)

Answer rating: 100% (QA)

To determine the change to decision reversal for annual revenues and investment cost we need to calculate the net present value NPV of the project using the given information and the companys minimum ... View the full answer