Prepare a tabular distribution by using PW as FoM

Assignment Help Finance Basics
Reference no: EM132182302

Question - A new explosive detection robot will be built by TNT Enterprises and will cost $15,000,000 to build, $850,000 annually to maintain and operate and have an expected life of 5 years. The revenue is estimated to be $1,600,000 per year. The MARR is 8%. Conduct a sensitivity analysis based on the given information.

a) Calculate the PW of the Base case based on above given data.

b) Calculate the PW for the range of-15% to +15% for initial cost.

c) Calculate the PW for the range of-25% to +25% for annual revenue.

d) Prepare a tabular distribution by using PW as FoM.

e) Rank order the input variables for their impact of the PW.

f) Prepare a sensitivity graph comparing the percentage of deviation from the base case to the PW.

Reference no: EM132182302

Questions Cloud

What are democratic and socialist ideologies : What are Democratic and socialist ideologies? Under which ideology does a strong central government play a stronger role in the lives of citizens?
Explain the specific responsibilities the sm will take up : Explain the specific responsibilities the SM will take up at Top Shelf and the benefits and costs associated with the hire.
Design a plan to protect the environment or put earth : What role do you believe humans should play with regards to the environment? Why? How would you design a plan to protect the environment or put the earth first?
Potential ramifications of rashida talib election : What will be the potential ramifications of Rashida Talib's election as the first Muslim woman to congress and please explain the potential impact
Prepare a tabular distribution by using PW as FoM : A new explosive detection robot will be built by TNT Enterprises and will cost $15,000,000 to build, Prepare a tabular distribution by using PW as FoM
Describe measures that you would take as a nurse : For the middle-aged adult, exercise can reduce the risk of various health problems. Choose three health issues that regular physical exercise and activity can.
Which ones have the most impact on your buying decisions : Consider the many means of differentiating products and services. Which ones have the most impact on your buying decisions? Why?
Distinguish negligence from malpractice : List the elements of malpractice and give examples of each element in professional nursing practice, including ways to avoid or lessen the potential of future.
How does this relate to their brand management strategies : Using segmentation strategies, what are the target market(s) for The Ritz-Carlton? How does this relate to their brand management strategies?

Reviews

Write a Review

Finance Basics Questions & Answers

  Qthe following accounts billions are taken from balance

q.the following accounts billions are taken from balance sheet of well-known depository financial institutionnow

  The principle of the time value of money

Most states have turned to the lottery to raise money for education and other state financing needs. Determine the largest payout for the state in which you reside. Explain the options for receiving the money and select the method you would choose. P..

  Trace bond value-current yield

Coupon payments are made annually and the bond matures in 4 years. Trace bond value, current yield, and capital gains yield for each year of the bond

  Greater economic growth typically causes interest

Greater economic growth typically causes interest rates to rise.  We will learn later in this course, hopefully, that higher interest rates cause the currency to appreciate versus foreign currencies.  Can you explain why an appreciated dollar can pre..

  A leader in your firm has been studying the foreign

a leader in your firm has been studying the foreign exchange market for a number of years and believes that she can

  Compare and contrast process of accounting standard setting

Compare and contrast the process of accounting standard setting and financial statement presentation between these regulatory agencies.

  What is the after tax cost of preferred stock

Flotation costs for new insurances of preferred stock are 4.5% of the stock value. What is the after tax cost of preferred stock if the firm's tax rate is 30%

  What is the frequency of budget reports

What is the frequency of budget reports? How many per year? Explain it's importance.

  How much interest was included in the first payment

How much interest was included in the first payment? How much repayment of principal was included? How do these values change for the second payment?

  Miller modigliani capital structure model with taxes

If an indentical unlevered firm has a total value of 500,000, under Miller and Modigliani model with corporate taxes (MM 2), what is the value of your levered

  Construct the premium amortization schedule

A bond has a face value of $2,000 redeemable in 5 years at a coupon rate of 8%. Construct the premium amortization schedule if the bond is to be purchased to yield 6%

  Derive transport cost per pallet as a function of shipment

A trailer can contain 36 pallets. Derive the transport cost per pallet as a function of shipment size for the case where one or two trailers are used.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd