A company is planning to raise savings with associated probabilities shown in the table below. The useful life is 5 years with a probability of 0.6 and 3 years with probability of 0.4. Use a MARR of 10% 1. Determine the joint probability distributicon for savings per year and useful life. 2. Determine the Expected Value of NPW if an initial Cost of $50,000 is required. Annual Benefit Probability $15.000 $20,000 $25,000 0.25 0.45 03

A company is planning to raise savings with associated probabilities shown in the table below. The useful life is 5 years with a probability of 0.6 and 3 years with probability of 0.4. Use a MARR of 10% 1. Determine the joint probability distributicon for savings per year and useful life. 2. Determine the Expected Value of NPW if an initial Cost of $50,000 is required. Annual Benefit Probability $15.000 $20,000 $25,000 0.25 0.45 03

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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