Variation in Parameter Estimates

Net Present Value $

Expected time to obsolescence:

Never

42,799

10 years

21,340

8 years

16,914

5 years

5415

4 years

(1000)

Corporate tax rate:

0

13,311

30%

6133

33%

5415

36%

4697

Tax depreciation rate:

30%

4704

35%

5076

40%

5415

45%

5724

Trend in cash flows:

10% declining

(1184)

5% declining

5415

1% increasing

13,022

5% increasing

21,773

10% increasing

31,939

Discount rate:

6%

12,566

8%

8899

10%

5415

12%

2102