A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below: Initial CostProbability Net RevenueProbability$120,0000.25 $33,0000.15$240,0000.60 $44,0000.55$300,0000.15 $52,0000.30 Determine the EUAW for the combination of inital cost and revenue with the highest probability of occurence. Express your answer in $ to the nearest $100.Answer is 8233.0Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.

Given,Initial CostProbabilityNet…

Answered: A project has a life of 10 years and no…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below:

Initial Cost	Probability	Net Revenue	Probability
$120,000	0.25	$33,000	0.15
$240,000	0.60	$44,000	0.55
$300,000	0.15	$52,000	0.30

Determine the EUAW for the combination of inital cost and revenue with the highest probability of occurence. Express your answer in $ to the nearest $100.

Answer is 8233.0

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

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