An initial investment of $9,000 results in annual receipts of $2,500 until the project is terminated. The probability distribution for the life of the project is estimated to be as follows: N 4 5 6 7 8 P(N) 0.10 0.25 0.45 0.15 0.05 Use a MARR of 15% per year to determine the probability the investment is profitable (i.e., its PW 20).

An initial investment of $9,000 results in annual receipts of $2,500 until the project is terminated. The probability distribution for the life of the project is estimated to be as follows: N 4 5 6 7 8 P(N) 0.10 0.25 0.45 0.15 0.05 Use a MARR of 15% per year to determine the probability the investment is profitable (i.e., its PW 20).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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