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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Ned Thompson Labs performs tests on super alloys, titanium, aluminum, and most metals. Tests on metal composites that rely upon scanning electron microscope results can be subcontracted, or the labs can purchase new equipment. Evaluate the sensitivity of the economic decision to purchase the equipment over a range of 20% (in 10% increments) of the estimates for P , AOC, R , n , and MARR (range on MARR is 12% to 16%). Use the AW method and plot the results on a sensitivity graph (like Figure 18–3 ). For which parameter(s) is the AW most sensitive? Least sensitive?
First cost P = $−220,000
Salvage S = $20,000
Life n = 10 years
Annual operating cost AOC = $−30,000/year
Annual revenue R = $70,000 per year
MARR i = 15% per year
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