Perform two parameter btcf sensitivity analysis

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Reference no: EM132037900

A fully automated conveyor system is installed at Corporation maternity that will have an initial investment of $1,000,000, and will require an upgrade of 25% of initial investment in software at the end of the 5 year. The company expects that the system will generate equivalent annual savings $240,000 increasing by a gradient series of $5,000 and will have annual O&M costs of $75000. The company expects that the robot will have a useful life of 10 years, and that time will have a salvage value of $100,000. The administration is concerned about the accuracy of the projected savings and increase per year of the O&M costs. Perform a two parameter BTCF sensitivity analysis to determine the range in which these two parameters could vary to have a PW>0.

Reference no: EM132037900

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