New equipment was bought by an engineering firm for $5 million. For the base case, assume a 7% interest rate, a 20% depreciation rate and service life of four years. Construct a sensitivity graph for the PW of the equipment's salvage value with respect to a variation of 20% in its depreciation rate.

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The Answer of New equipment was bought by an engineering firm for $5 million. For the base case, assume a 7% interest rate, a 20% depreciation rate and service life of four years. Construct a sensitivity graph for the PW of the equipment's salvage value with respect to a variation of 20% in its depreciation rate.

New Equipment Was Bought by an Engineering Firm for $5