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Development of a new computer network requires $1,007,324 as first costs and $45,051 per year as operating costs. It will be in operation for the next 5 years bringing $542,338 as annual revenue over this period. It is also known that MARR is 15%, and the depreciation rate associated with the first cost is 20%. If you are asked to construct sensitivity graphs for (-20%, +20%) interval, what will be the slope of the line associated with operating costs in this interval?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91839505

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