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Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 20
A new online patient diagnostics system for surgeons will cost $200,000 to install, cost $5000 annually to maintain and will have an expected life of 5 years. The added revenue is estimated to be $60,000 per year, and the MARR is 10% per year. Examine the sensitivity of present worth to variation in selected parameter estimates, while others remain constant.
Sensitivity to revenue variation: $45,000 to $75,000 (25% to +25%).
Sensitivity to revenue variation: $45,000 to $75,000 (25% to +25%).
Explanation
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P is the present value of money, F is th...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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