Use the data table and the spiderplot below to answer the questions.ItemInitial investment, $Annual revenue, $Annual expense, $Market value, $Project life, yearsPW, in-20%-15%-10%PW v.% Change in Parmeter$15,000.00$10,000.00$5,000.00ههای-5%($5,000.00)($10,000,00)($15,000.00)($20,000.00)($25,000.00)Estimated Cash Flows55,00070004500180080%5%10%Change in Parameter, in %15%20%25%30% a. (Y/N) Is this project economically justified, EJ?O YesNOb. Why or Why Not? Economically Justified, EJO UnkownO EJ because PW < 0Not EJ because likely AW<0O EJ because AW > 0c. The parameter most sensitive to breakeven is?MV(8)AEOARO FCd. The parameter that management should be least worried about is?O FCO ARO AEOMV(8)e, (T/F) If the initial investment cost is reduced by $5,000, the project will be economically justified.

This question involves the analysis of a project using cash flow data and a spider plot. The…

Use the data table and the spiderplot below to answer the questions. Item 02$% -20% PW, in S Initial investment, $ Annual revenue, $ Annual expense, $ Market value, $ Project life, years -10% PW v.% Change in Parmeter $15,000.00 $10,000.00 $5,000.00 + $0.00 -5% ($5,000.00) ($10,000.00) ($15,000.00) ($20,000.00) ($25,000.00) Estimated Cash Flows 55,000 7000 4500 1800 8 0% 5% 10% Change in Parameter, in % 15% 20% 25% 30%

Use the data table and the spiderplot below to answer the questions. Item 02$% -20% PW, in S Initial investment, $ Annual revenue, $ Annual expense, $ Market value, $ Project life, years -10% PW v.% Change in Parmeter $15,000.00 $10,000.00 $5,000.00 + $0.00 -5% ($5,000.00) ($10,000.00) ($15,000.00) ($20,000.00) ($25,000.00) Estimated Cash Flows 55,000 7000 4500 1800 8 0% 5% 10% Change in Parameter, in % 15% 20% 25% 30%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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