Prepare a tabular distribution by using PW as FoM

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Question - A new explosive detection robot will be built by TNT Enterprises and will cost $15,000,000 to build, $850,000 annually to maintain and operate and have an expected life of 5 years. The revenue is estimated to be $1,600,000 per year. The MARR is 8%. Conduct a sensitivity analysis based on the given information.

a) Calculate the PW of the Base case based on above given data.

b) Calculate the PW for the range of-15% to +15% for initial cost.

c) Calculate the PW for the range of-25% to +25% for annual revenue.

d) Prepare a tabular distribution by using PW as FoM.

e) Rank order the input variables for their impact of the PW.

f) Prepare a sensitivity graph comparing the percentage of deviation from the base case to the PW.

Reference no: EM132182302

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