2. Based on an approximation with the beta distribution, which has been used in project management for a long time, compute the mean for each parameter and the calculate the present worth using the mean values. MARR = 10%. Optimistic $500 Most likely $1,000 $200 Pessimistic $1,200 $150 $0 Initial cost Annual benefit $220 Salvage value Useful life, in years $50 $40 10 8
2. Based on an approximation with the beta distribution, which has been used in project management for a long time, compute the mean for each parameter and the calculate the present worth using the mean values. MARR = 10%. Optimistic $500 Most likely $1,000 $200 Pessimistic $1,200 $150 $0 Initial cost Annual benefit $220 Salvage value Useful life, in years $50 $40 10 8
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:2. Based on an approximation with the beta distribution, which has been used in project management for a long
time, compute the mean for each parameter and the calculate the present worth using the mean values. MARR =
%3D
10%.
Optimistic
$500
Most likely
$1,000
$200
$40
Pessimistic
Initial cost
$1,200
$150
Annual benefit
$220
Salvage value
Useful life, in years
$50
$0
10
9.
8.
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