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A new online patient diagnostics system for surgeons will cost $200,000 to install, $5,000 annually to maintain and have an expected life of 5 years. The revenue is estimated to be $60,000 per year. The MARR is 10%. Conduct sensitivity analysis based on the given information.

a) Calculate the PW of the Base case based on above given data.

b) Calculate the PW for the range of -25% to +25% for initial cost.

c) Calculate the PW for the range of -10% to +10% for annual revenue.

d) Prepare a tabular distribution by using PW as FoM.

e) Rank the order of input variables for their impact of the PW.

f) Prepare a sensitivity graph comparing the percentage of deviation from the base case to the PW. 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91297938

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