Can you help me with these sensitivity questions? The dollar value (nearest $100

Question

Can you help me with these sensitivity questions?

The dollar value (nearest $100) of cell DD is
a) -12,000; b) -8,900; c) 4,800; d) 5,700.
5. The dollar value (nearest $100) of cell EE is
a) -137,600; b) -125,800; c) 23,600; d) 41,800.

I. Initial Cost (P) = $450,000 2. Salvage value (SV)= $45,265 3. Annual operating revenues (AOR) = $300,000 4. Annual operating costs (AOC)= $180,000 5. Economic life (N) = 5 years 6. MARR= 10% 7. Inflation Rate=0% One-way Sensitivity Table Net Present Worth (NPW Parameters -15% -10%| -5% | Reference l +5% +10% +15% Scenario AOR AOC SV MARR

Explanation / Answer

NPV Calcualtion at CC Year Particulars Cashflow Discounting factor @10% Discounted cashflow 0 Inintial Cost $       (450,000) 1.00         (450,000) 1 Cashflow $          120,000 0.91           109,091 2 Cashflow $          120,000 0.83              99,174 3 Cashflow $          120,000 0.75              90,158 4 Cashflow $          120,000 0.68              81,962 5 Cashflow $          120,000 0.62              74,511 5 Salvage value $            45,265 0.62              28,106 NPV        33,000.42 NPV Calcualtion at DD Year Particulars Cashflow Discounting factor @10% Discounted cashflow 0 Inintial Cost $       (495,000) 1.00         (495,000) 1 Cashflow $ 120,000 0.91           109,091 2 Cashflow $ 120,000 0.83 99,174 3 Cashflow $ 120,000 0.75 90,158 4 Cashflow $ 120,000 0.68 81,962 5 Cashflow $ 120,000 0.62              74,511 5 Salvage value $ 45,265 0.62 28,106 NPV at DD     (12,000) NPV Calcualtion at EE Year Particulars Cashflow Discounting factor @10% Discounted cashflow 0 Inintial Cost $       (450,000) 1.00         (450,000) 1 Cashflow $ 75,000 0.91 68,182 2 Cashflow $ 75,000 0.83 61,983 3 Cashflow $ 75,000 0.75 56,349 4 Cashflow $ 75,000 0.68 51,226 5 Cashflow $ 75,000 0.62 46,569 5 Salvage value $ 45,265 0.62 28,106 NPV at EE         (137,600)

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