Question: This is the problem the question is referring to. 8 and 9. If a sensitivity analysis was performed on scenario 2 machine in problem 4.2,
8 and 9. If a sensitivity analysis was performed on scenario 2 machine in problem 4.2, by varying the purchase price, the useful life, and the internal rate of return (that is 3 factors) by + 20% each, how many PV calculations you have to make, and how many points you will plot for the sensitivity analysis. (You do not have to do the analysis, just show the numbers) Number of PV calculations? Number of points to plot on the sensitivity curve? 9. Compare the two scenarios for acquiring a machine for a project for 24 years expected operations, at a company with an internal rate of return of i= 17%. Which scenario is better? Please round to the nearest $. Scenario 1. Buy an initial small machine at $15,000, it cost $2,400/year to run for the first 14 years, buy a second larger machine at $25,000 and run it for 10 years at a cost of $5,000/year. There is no salvage value at the end of service for either machine. Scenario 2. Buy a large machine for $42,000 and run it for 24 years at a cost of $1,000/year. At the end of the 24 years, the machine is assumed to have a salvage value of $8,500
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