The following graph has plots of the net PW of an investment as functions of %-ge changes in the values of the input variables V1, V2, V3 and V4.Sensitivity Plots$10,000$8,000$6,000$4,000$2.000-30% -20%-10%-$2,000-$4,000$6,0000%10% 20%V1V2V330%V4What is the maximum allowable change in V1 before the investment becomes un-economical?O A. Decrease of 9%O B. Decrease of $2,000O C. No change can affect economic feasibilityO D. Increase of $2,000O E. Increase of 9%

The issue that you raised has to do with finance and investment analysis. It entails determining how…

What is the maximum allowable change in V1 before the investment becomes un-economical? O A. Decrease of 9% B. Decrease of $2,000 C. No change can affect economic feasibility D. Increase of $2,000 E. Increase of 9%

What is the maximum allowable change in V1 before the investment becomes un-economical? O A. Decrease of 9% B. Decrease of $2,000 C. No change can affect economic feasibility D. Increase of $2,000 E. Increase of 9%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The following graph has plots of the net PW of an investment as functions of %-ge changes in the values of the input variables V1, V2, V3 and V4.
Sensitivity Plots
$10,000
$8,000
$6,000
$4,000
$2.000
-30% -20%
-10%
-$2,000
-$4,000
$6,000
0%
10% 20%
V1
V2
V3
30%
V4
What is the maximum allowable change in V1 before the investment becomes un-economical?
O A. Decrease of 9%
O B. Decrease of $2,000
O C. No change can affect economic feasibility
O D. Increase of $2,000
O E. Increase of 9%

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