You have been asked to perform a sensitivity analysis on a companys plan to modernize its facilities to determine the impact of possible errors in estimating the net annual savings. The initial investment in the modernization is $30,000. The expected net annual savings are $13,000. The salvage value is $7,000 after a planning horizon of 7 years. MARR is 12% per year.

a) Determine the AW if the net annual savings change by the following percentage from the initial estimate: 20%

b) Determine the percentage change in net annual savings that causes a reversal in the decision regarding the attractiveness of the project.