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Unformatted text preview: is 10 years and salvage values for both designs are estimated to be zero. Assume that the firm may be mistaken in all cost estimates and perform a sensitivity analysis to determine the effect of simultaneous errors in estimating the differences in initial investment, and the differences in annual operating and maintenance costs, on the decision of the firm. Use an annual worth analysis. Also, carry out a graphical analysis that shows the indifference curve on the errors plane and identify the cost to which the investment decision is most sensitive. MARR = 15%. AW analysis should be carried out on the differences of initial investment and annual operating maintenance cost....
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This note was uploaded on 07/30/2009 for the course INDUSTRIAL 304 taught by Professor Temeldursun during the Spring '09 term at Boğaziçi University.
- Spring '09