An online patient diagnostics system for surgeons has the following point estimates: A first cost of $200,000 to install and $5000 annually to maintain over its expected life of 5 years. Added revenue is estimated to average $60,000 per year. Examine the sensitivity of present worth at a MARR of 10% per year to variation in selected parameter estimates, while others remain constant. Sensitivity to life variation: 4 years to 7 years (?20% to + 40%).
What will be an ideal response?
n = life PW = -200,000 + (60,000 - 5000)((P/A,10%,n)
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