Determine if different estimates will change the decision

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Question 1: Determine whether changing the annual revenue will change the feasibility of an alternative using the PW analysis

Question 2: Hemisphere Electric may purchase equipment to manufacture a new line of wireless devices for home appliance control. The first cost of the equipment will be $84,000, and the life of the equipment is estimated to be 6 years with a salvage value of $10,000. Different people in marketing have provided revenue estimates that the devices will generate. The estimates range from a low of $10,000 to a high of $20,000, with an average of $16,000 per year. If the MARR is 12% per year, use PW to determine if these different estimates will change the decision to purchase the equipment.

The present worth of low estimate range is $_______.

The present worth of average estimate range is $_______.

The present worth of high estimate range is $_______.

Reference no: EM132939640

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