Question: Instruction: Submit a single Excel file. All calculations must be done in Excel. Screenshots or calculations by hand will not be graded. Sensitivity Analysis

Instruction: Submit a single Excel file. All calculations must be done in

Instruction: Submit a single Excel file. All calculations must be done in Excel. Screenshots or calculations by hand will not be graded. Sensitivity Analysis Investing in a Surface-mount Placement (SMP) We are considering investing in a surface-mount placement (SMP) machine: a $480,000 initial investment, annual savings of $92,500 for a 10-year period, and a salvage value of $46,000. Assume a MARR of 10% per year. Determine how sensitive the annual worth (AW) for the investment is to errors in estimating the initial investment, the annual savings, the salvage value, and the MARR. Specifically, for an error range of + 50% for each parameter, what is the impact on AW? a) Use EXCEL and perform a sensitivity analysis. b) Find the breakeven points. c) Graph the results of analysis. d) Interpret the results. C ZOOM +

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