Question: Question #6 (10 Points): This spider plot is for an electric power generation plat. Answer the questions based on the plot. 50000 40000 30000 20000

Question #6 (10 Points): This spider plot is for an electric power generation plat. Answer the questions based on the plot. 50000 40000 30000 20000 Net present value (in million Tk.) 10000 0 -10000 -80% -60% -40% 20% 0% 20% 40% 60% 80% -20000 -30000 -40000 - Capital cost Electricity price -O&M cost Discount rate a) The project's Present Worth is most sensitive to which of the five shown parameters? How did you know? b) With all other parameters constant, can the project achieve the MARR if the capital cost rises by 20%? How did you know? c) With all other parameters constant, can the project achieve the MARR if the O&M costs rise by 20%? How did you know? d) If no sensitivity analysis is done, what will be the reported Present Worth of the Project? How did you know? Question #6 (10 Points): This spider plot is for an electric power generation plat. Answer the questions based on the plot. 50000 40000 30000 20000 Net present value (in million Tk.) 10000 0 -10000 -80% -60% -40% 20% 0% 20% 40% 60% 80% -20000 -30000 -40000 - Capital cost Electricity price -O&M cost Discount rate a) The project's Present Worth is most sensitive to which of the five shown parameters? How did you know? b) With all other parameters constant, can the project achieve the MARR if the capital cost rises by 20%? How did you know? c) With all other parameters constant, can the project achieve the MARR if the O&M costs rise by 20%? How did you know? d) If no sensitivity analysis is done, what will be the reported Present Worth of the Project? How did you know
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
