Using Precision Tree, add to the Excel file a decision tree with four choices: a. Engine modification only b. Flight control software modification only C. Both the engine and flight control software modifications d. No modifications Link each end node to the appropriate Net Cash Flow cell. Run a sensitivity analysis. Use the instructions on pages 212 to 218 in the textbook as a guide. a. Create a tornado diagram for the four alternatives. b. For the alternative where both the engine and the software modifications are used calculate the contribution of total uncertainty from each variable. (See the lecture 12.1 recording or slide six from that lesson.) Answer questions one through three and submit a pdf file with your answers. Please be sure to include your name in your submission. Aircraft Revenue 32 sAircraft Fuel Consumption 0.466 Consumption Fuel gallon/mile 2.5 SRevenuePer Mile count $/mile Engine Modification Cost Software Modification Cost Fuel Price (Jet A) Air Miles Flown Table of Uncertainties Low Base $ 10,000 $ $ 1,000 $ $4.45 1,600,000 Fuel Consumption Reduction 1% 1% 1% High Units 20,000 $ 32,000 dollars/aircraft 8,000 $ 11,000 dollars/aircraft $4.73 $6.81 $/gallon 8,000,000 16,000,000 miles/year Engine Mod Software Mod Both Mods 4% 2% 5% 9% % improvement 7.50% % improvement 12% % improvement Alternatives Engine SW Engine & SW None $ 0 0 Engine Modification Cost Software Modification Cost Air Miles Fuel Price (Jet A) Fuel Consumption Reduction Adjusted Fuel Consumption Rate Total Adjusted Fuel Consumption Total Adjusted Fuel Cost Revenue Net Cash Flow 640,000 0 $ 8,000,000 $4.73 4% 0.44736 3,578,880 16,928,102 20,000,000 2,431,898 $ ols 256,000 $ 8,000,000 $4.73 2% 0.45668 3,653,440 17,280,771 20,000,000 2,463,229 $ 640,000 204,800 8,000,000 $4.73 5% 0.4427 3,541,600 16,751,768 20,000,000 2,403,432 $ 8,000,000 miles $4.73 $/gallon 0 % 0.466 gallon/mile 3,728,000 gallons 17,633,440 dollars 20,000,000 dollars 2,366,560 dollars $ Using Precision Tree, add to the Excel file a decision tree with four choices: a. Engine modification only b. Flight control software modification only C. Both the engine and flight control software modifications d. No modifications Link each end node to the appropriate Net Cash Flow cell. Run a sensitivity analysis. Use the instructions on pages 212 to 218 in the textbook as a guide. a. Create a tornado diagram for the four alternatives. b. For the alternative where both the engine and the software modifications are used calculate the contribution of total uncertainty from each variable. (See the lecture 12.1 recording or slide six from that lesson.) Answer questions one through three and submit a pdf file with your answers. Please be sure to include your name in your submission. Aircraft Revenue 32 sAircraft Fuel Consumption 0.466 Consumption Fuel gallon/mile 2.5 SRevenuePer Mile count $/mile Engine Modification Cost Software Modification Cost Fuel Price (Jet A) Air Miles Flown Table of Uncertainties Low Base $ 10,000 $ $ 1,000 $ $4.45 1,600,000 Fuel Consumption Reduction 1% 1% 1% High Units 20,000 $ 32,000 dollars/aircraft 8,000 $ 11,000 dollars/aircraft $4.73 $6.81 $/gallon 8,000,000 16,000,000 miles/year Engine Mod Software Mod Both Mods 4% 2% 5% 9% % improvement 7.50% % improvement 12% % improvement Alternatives Engine SW Engine & SW None $ 0 0 Engine Modification Cost Software Modification Cost Air Miles Fuel Price (Jet A) Fuel Consumption Reduction Adjusted Fuel Consumption Rate Total Adjusted Fuel Consumption Total Adjusted Fuel Cost Revenue Net Cash Flow 640,000 0 $ 8,000,000 $4.73 4% 0.44736 3,578,880 16,928,102 20,000,000 2,431,898 $ ols 256,000 $ 8,000,000 $4.73 2% 0.45668 3,653,440 17,280,771 20,000,000 2,463,229 $ 640,000 204,800 8,000,000 $4.73 5% 0.4427 3,541,600 16,751,768 20,000,000 2,403,432 $ 8,000,000 miles $4.73 $/gallon 0 % 0.466 gallon/mile 3,728,000 gallons 17,633,440 dollars 20,000,000 dollars 2,366,560 dollars $