Question: Question #6 (10 Points): This spider plot is for an oil refinery project. Answer the questions based on the plot. Sensitivity Analysis $150.00 NPV (in

 Question #6 (10 Points): This spider plot is for an oil

Question #6 (10 Points): This spider plot is for an oil refinery project. Answer the questions based on the plot. Sensitivity Analysis $150.00 NPV (in Smillions) Pred Volume CAPEX Olle 150.00 100% 110 a) The project's Present Worth is most sensitive to which of the three shown parameters? How did you know? b) With all other parameters constant, can the project achieve the MARR if the Production Volume declines by 20%? How did you know? c) With all other parameters constant, can the project achieve the MARR if the oil prices decline 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 oil refinery project. Answer the questions based on the plot. Sensitivity Analysis $150.00 NPV (in Smillions) Pred Volume CAPEX Olle 150.00 100% 110 a) The project's Present Worth is most sensitive to which of the three shown parameters? How did you know? b) With all other parameters constant, can the project achieve the MARR if the Production Volume declines by 20%? How did you know? c) With all other parameters constant, can the project achieve the MARR if the oil prices decline 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

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