Im struggling answering these questions can you help me? 15. The most influentia

Question

Im struggling answering these questions can you help me?

15. The most influential parameter on the project’s NPW in the -15% to +15% range is a) P; b) AOR; c) AOC; d) SV; e) MARR.
16. The second most influential parameter on the project’s NPW in the --15% to +15% range is a) P; b) AOR; c) AOC; d) MARR; e) SV.

I. Initial Cost (P) = $450,000 2. Salvage value (SV)= $45,265 3. Annual operating revenues (AOR) = $300,000 4. Annual operating costs (AOC)= $180,000 5. Economic life (N) = 5 years 6. MARR= 10% 7. Inflation Rate=0% One-way Sensitivity Table Net Present Worth (NPW Parameters -15% -10%| -5% | Reference l +5% +10% +15% Scenario AOR AOC SV MARR

Explanation / Answer

15. The most influential parameter on the project’s NPW in the -15% to +15% range is

answer is option A P

the initial cost of project is very crucial in calculating net present worth. This parameter help in determining what amount of revenues would be sufficient to for the acceptance of project. the cash outflow plays an important role to determine net present worth

16. The second most influential parameter on the project’s NPW in the --15% to +15% range is

answer is option B AOR

the cash inflows are essential as they are requried to be higher than cash outflow for the acceptance of the project.

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