9) The initial cost of a random investment is negotiable. The lifetime is 5 years. The MARR is 10% a year. The annual benefit is B= $1000+ X. Where X is a random variable with pdf S 2e-2x, x > 0 f(x) = } 0, otherwise One unit of X= $100. What is the range of the initial cost so that the investment is attractive? a) < $500 b) < $3222 c)<$ 3980 d) < $4189

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9) The initial cost of a random investment is negotiable. The lifetime is 5 years.
The MARR is 10% a year. The annual benefit is B= $1000+ X.
Where X is a random variable with pdf
2e-2x, x > 0
f(x) ={0, otherwise
One unit of X= $100.
What is the range of the initial cost so that the investment is attractive?
a) < $500
b) < $3222 c) <$ 3980
d) < $4189
Transcribed Image Text:9) The initial cost of a random investment is negotiable. The lifetime is 5 years. The MARR is 10% a year. The annual benefit is B= $1000+ X. Where X is a random variable with pdf 2e-2x, x > 0 f(x) ={0, otherwise One unit of X= $100. What is the range of the initial cost so that the investment is attractive? a) < $500 b) < $3222 c) <$ 3980 d) < $4189
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