Changes in the estimate of annual revenues

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A company is considering the purchase of an industrial laser for $150,000. The device has a useful life of five years and a salvage (market) value of $30,000 at the end of those five years. Annual revenues are estimated to be $55,000 per year. Annual expenses are guaranteed to be $10,000 per year. Using a MARR = 18%, determine how sensitive the decision is to changes in the estimate of annual revenues? Express your answer as a percent change from the estimated value of $55,000.

Reference no: EM132505308

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