The world$$s largest carpet maker has just completed a feasibility study of what to do

with the $16,000$ tons of overruns, rejects, and remnants it produces every year. The

company$$s CEO launched the feasibility study by asking, Why pay someone to dig coal

out of the ground and then pay someone else to put our waste into a landfill? Why not

just burn our own waste? The company is proposing to build a $$10-$million power plant

to burn its waste as fuel, thereby saving $$2\mathrm{.}8$ million a year in coal purchases. Company

engineers have determined that the waste$-$burning plant will be environmentally sound,

and after its four$-$year

study period the plant can be sold to a local electric utility for $$5$ million.

The firm$$s MARR is $15\%.$ Develop a spreadsheet to investigate the sensitivity of the

proposal$$s PW to changes in the estimates of

$($a$)$ initial investment amount,

$($b$)$ annual savings of fuel cost, and

$($c$)$ future resale value of the plant.

To which factor is the decision most sensitive$?$

Include in your solution the specific values of these factors that would cause decision

reversal.