The following spider plot displays the impact of each

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The following “spider-plot” displays the impact of each parameter on the annual worth. The graph shows that the annual savings have the greatest impact on the annual worth value while the salvage value has the least impact.
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Principles of Engineering Economic Analysis , 5th edition Sensitivity Analysis for Example 13.6
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Principles of Engineering Economic Analysis , 5th edition Example 13.7 Consider the following sensitivity graph and answer the questions below.
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Principles of Engineering Economic Analysis , 5th edition The analysis is most sensitive to changes in which component? a)Annual Revenue b)Initial Investment c)Salvage Value d)Cannot be determined from the information given
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Principles of Engineering Economic Analysis , 5th edition Answer: (a)
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Principles of Engineering Economic Analysis , 5th edition The analysis is least sensitive to changes in which component? a)Annual Revenue b)Initial Investment c)Salvage Value d)Cannot be determined from the information given
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Principles of Engineering Economic Analysis , 5th edition Answer: (c)
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Principles of Engineering Economic Analysis , 5th edition What is the numeric value of the present worth of the original project (i.e., no changes)? a)-10 b)20 c)1,000 d)Cannot be determined from the information given
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Principles of Engineering Economic Analysis , 5th edition Answer: (c)
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Principles of Engineering Economic Analysis , 5th edition What percentage change in initial investment would cause the project to become unattractive? a)-10 b)20 c)1000 d)Cannot be determined from the information given
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Principles of Engineering Economic Analysis , 5th edition Answer: (b)
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