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Your Initials: When the country's economy is expanding. AB Investment Company is optimistic and spects...

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Accounting

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Your Initials: When the country's economy is expanding. AB Investment Company is optimistic and spects a MARR of 15% for new investments. However, in a receding econ my MARR is g% normally MARR is 10%. The life of each plane is 20 years, however, an expanding economy causes the estimates of asset life to go down about 20%, and areceding economy makes the n values increase about 10%. (25 points) Plan M Plan Q Initial investment. S -100,000 110000 Cash flow, Vyear +15,000 +19.000 Lafe, years 20 20 (a)lf the life is 20 years, determine the sentivity of the MARR (three values) with repect to the present worth of the two plans (10 points) 10 (2 points (b) Is the present worth for plan M sensitive to the MARR

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