I need two sensitivity analyses completed based on the following data. The two sensitivity analyses text should include any assumptions and limitations, a description of the methodology used to arrive at a decision, and at least two possible events that could change the current results and report the variable you changed in each sensitivity analysis and the resulting present values. The sensitivity analyses just need to be explained and described in the report.

    

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Chapter 7 Bunyan Lumber, LLC Input area: Total acreage Years since original planting 1P pond value 2P pond value 3P pond value Cash flow/acre from thinning Years from today for harvest to begin 20 Defect rate Tractor cost (MBF) Road (MBF) Sale preparation and administrative (MBF) Excavator piling/acre Broadcast burning/acre Site preparation/acre Planting costs/acre Nominal required return Inflation rate Tax rate 25 30 35 Conservation fund Conservation fund growth $ $ $ $ Harvest (MBF) per acre $ $ $ $ $ $ $ 5,000 20 645 620 605 1,200 S 15.1 17.4 18.2 18.9 5% 145 50 18 155 305 150 230 10.00% 3.70% 21% 500,000 3.20% 1P 14% 20% 22% 24% 2P 32% 44% 46% 47% 3P 54% 36% 32% 29% per acre 75,500.00 87,000.00 91,000.00 94,500.00 1P 2P 3P 10,570.00 24,160.00 40,770.00 17,400.00 38,280.00 31,320.00 20,020.00 41,860.00 29,120.00 22,680.00 44,415.00 27,405.00 Sub total 3P rev 24,665,850.00 2P rev defect rate 6,817,650.00 14,979,200.00 46,462,700.00 44,139,565.00 11,223,000.00 23,733,600.00 18,948,600.00 53,905,200.00 51,209,940.00 12,912,900.00 25,953,200.00 17,617,600.00 56,483,700.00 53,659,515.00 14,628,600.00 27,537,300.00 16,580,025.00 58,745,925.00 55,808,628.75 1P Rev Chapter 7 Bunyan Lumber, LLC Input area: Total acreage Years since original planting 1P pond value 2P pond value 3P pond value Cash flow/acre from thinning Years from today for harvest to begin 20 Defect rate Tractor cost (MBF) Road (MBF) Sale preparation and administrative (MBF) Excavator piling/acre Broadcast burning/acre Site preparation/acre Planting costs/acre Nominal required return Inflation rate Tax rate 25 30 35 Conservation fund Conservation fund growth $ $ $ $ Harvest (MBF) per acre $ $ $ $ $ $ $ 5,000 20 645 620 605 1,200 S 15.1 17.4 18.2 18.9 5% 145 50 18 155 305 150 230 10.00% 3.70% 21% 500,000 3.20% 1P 14% 20% 22% 24% 2P 32% 44% 46% 47% 3P 54% 36% 32% 29% per acre 75,500.00 87,000.00 91,000.00 94,500.00 1P 2P 3P 10,570.00 24,160.00 40,770.00 17,400.00 38,280.00 31,320.00 20,020.00 41,860.00 29,120.00 22,680.00 44,415.00 27,405.00 Sub total 3P rev 24,665,850.00 2P rev defect rate 6,817,650.00 14,979,200.00 46,462,700.00 44,139,565.00 11,223,000.00 23,733,600.00 18,948,600.00 53,905,200.00 51,209,940.00 12,912,900.00 25,953,200.00 17,617,600.00 56,483,700.00 53,659,515.00 14,628,600.00 27,537,300.00 16,580,025.00 58,745,925.00 55,808,628.75 1P Rev