Examine how sensitive the annual worth for the investment

Reference no: EM13183713

Consider a $500,000 initial investment, annual savings of $92,500 for a 10-year period, a salvage value of $50,000, and a 10 % MARR applies.
Using a spider plot, examine how sensitive the annual worth for the investment is to errors in estimating the initial investment, the annual
savings, the salvage value, the investment's duration, and the MARR. Specifically, for an error range of ±50 % for each parameter, what is the
impact on AW?

Reference no: EM13183713

Questions Cloud

Compute the change in energy deltae : Calculate the change in energy deltaE that occurs when 0.5L of liquid water is vaporized

Determine under what circumstance design a will be preferred : Consider the following two alternative designs. Design A has an initial cost of $300,000 and net annual revenues of $55,000; Design B had an initial investment of $450,000 and net annual revenues of $80,000. A 10% MARR was used over the 10-year pl..

State expression for v as a function of t : is independent of pressure. By doing so, obtain an expression for V as a function of T and ? at fixed P.

Define produce high-purity silicon dioxide : One of the steps in purifying silicon involves reacting the intermediate silicon tetrachloride with steam to produce high-purity silicon dioxide and hydrogen chloride gas

Examine how sensitive the annual worth for the investment : Consider a $500,000 initial investment, annual savings of $92,500 for a 10-year period, a salvage value of $50,000, and a 10 % MARR applies. Using a spider plot, examine how sensitive the annual worth for the investment is to errors in estimating ..

Compute the total mass of sodium chloride : If the volume of ocean water 5.4*10^20) contains 4.1 percent sodium chloride ("salt") by mass and the density of the water is 1.86 g/mL, calculate the total mass of sodium chloride.

What is the break-even value for the investments duration : Assume $92,500 is an accurate estimate of the annual savings that will result from this investment, but it is not clear how long the machine will be used. Assuming that the salvage value decrease linearly from $500,000 to $50,000 over a 10-year in..

Depict the molecular structure of three monomeric units : Draw the molecular structure of three monomeric units of the addition polymer that results from polymerization of acetylene. Only show the structure that would be found inside the brackets of a condensed formula for this polymer

Show the calculations that lead to the conclusions : If the firm has $20,000 on hand, with only these two project to choose from, will they invest in A, B, neither or both? Show the calculations that lead to your conclusions. Explain whether you answers would be different for either project if the f..

User Account

All Pages