ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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, V4 and V5.
V1
V2
V3
50% NGƯỜ
V5
-30% -20%
$200,000
$150,000
$100,000
$50,000
-10%
-$50,000 -
-$100,000
-$150,000
0%
Present Worth
B. Decrease of $25,000
C. Increase of 22%
D. No change can affect economic feasibility
E. Decrease of 22%
10%
To which two variables is the present worth most sensitive to?
A. V1 and V2
B. V3 and V4
C. V4 and V5
D. V1 and V5
OE. V2 and V3
% change
20% 30% 40% 50%
What is the maximum allowable change in V2 before the investment becomes un-economical?
OA. Increase of $25,000
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Transcribed Image Text: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, V4 and V5. V1 V2 V3 50% NGƯỜ V5 -30% -20% $200,000 $150,000 $100,000 $50,000 -10% -$50,000 - -$100,000 -$150,000 0% Present Worth B. Decrease of $25,000 C. Increase of 22% D. No change can affect economic feasibility E. Decrease of 22% 10% To which two variables is the present worth most sensitive to? A. V1 and V2 B. V3 and V4 C. V4 and V5 D. V1 and V5 OE. V2 and V3 % change 20% 30% 40% 50% What is the maximum allowable change in V2 before the investment becomes un-economical? OA. Increase of $25,000
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