A manufacturing plant produces 5,000 units per year. The capital investment, annual expenses, salvage value, and reject rate are as follows: Capital investment $ 100,000 Useful life (years) 7 Annual...

A manufacturing plant produces 5,000 units per year. The capital investment, annual expenses, salvage value, and reject rate are as follows:

Capital investment $ 100,000 Useful life (years) 7 Annual expenses $ 15,000 Salvage value $ 7000 Reject rate 8.5% Non-defective units can be sold for $5 per unit and defective units can be sold for $1 per unit. The MARR = 9%.

Use at least 3 decimal places for each factor.

A- Find the PW for this project?

B- Determine how sensitive the decision to invest in this project to the estimates of initial investment and salvage value?