The dollar value (nearest $100) of cell JJ is a) -18,900; b) 26,000; c) 33,400;

Question

The dollar value (nearest $100) of cell JJ is
a) -18,900; b) 26,000; c) 33,400; d) 37,200.

The dollar value (nearest $100) of cell LL is
a) -33,800; b) 18,700; c) 82,500; d) 88,800.
13. The dollar value (nearest $100) of cell MM is
a) -39,800; b) -17,800; c) 53,000; d) 57,000.
14. The dollar value (nearest $100) of cell NN is
a) -16,900; b) 33,000; c) 36,800; d) 38,900.

Any way you can help me with these suggested study problems on sensitivty? Thanks!

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

In sensitivity analysis we analyse the effect of changes in various attributes on NPV..

Please provide feedback... Thanks in advance...:-)

1 Calculating NPV for JJ cell Year cash flow PV factor PV 0 -450000 1 -450000.00 1 to 5 120000 3.7908 454894.41 5 52054.75 0.620921 32321.90 37216.32 Annual cash inflows=300000-180000 Salvage value = 45265 x 1.15 Ans - (d) 2 Calculating NPV for LL cell Year cash flow PV factor PV 0 -450000 1 -450000.00 1 to 6 120000 4.2191 506297.43 6 45265 0.578085 26167.04 82464.46 Annual cash inflows=300000-180000 Annuity will change and also SV will be recovered later Ans - (c) 3 Calculating NPV for MM cell Year cash flow PV factor PV 0 -450000 1 -450000.00 1 to 5 120000 3.9406 472877.05 5 45265 0.665045 30103.28 52980.33 Annual cash inflows=300000-180000 New Rate = 10 x 0.85 Ans - (c) 4 Calculating NPV for NN cell Year cash flow PV factor PV 0 -450000 1 -450000.00 1 to 5 120000 3.7908 454894.41 5 45265 0.620921 28106.00 33000.42 Annual cash inflows=300000-180000 Ans - (b)

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