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Find the expected EUAW from the cost data provided in the table below for an equipment being considered at Component Systems in Syracuse, NY. Because of the uncertainty of technology being used in this equipment, it has not been possible to get the initial cost accurately. The annual benefit, however, is estimated to be $20,000 with a possible equipment life of 5 years. The salvage value is expected to be 10% of the initial cost. MARR =8%   First Cost, $       $50,000            $80,000            $100,000          $125,000 Probability        0.25                 0.35                 0.30                 0.10

Find the expected EUAW from the cost data provided in the table below for an equipment being considered at Component Systems in Syracuse, NY. Because of the uncertainty of technology being used in this equipment, it has not been possible to get the initial cost accurately. The annual benefit, however, is estimated to be $20,000 with a possible equipment life of 5 years. The salvage value is expected to be 10% of the initial cost. MARR =8%   First Cost, $       $50,000            $80,000            $100,000          $125,000 Probability        0.25                 0.35                 0.30                 0.10

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Find the expected EUAW from the cost data provided in the table below for an equipment being considered at Component Systems in Syracuse, NY. Because of the uncertainty of technology being used in this equipment, it has not been possible to get the initial cost accurately. The annual benefit, however, is estimated to be $20,000 with a possible equipment life of 5 years. The salvage value is expected to be 10% of the initial cost. MARR =8%

 

First Cost, $       $50,000            $80,000            $100,000          $125,000

Probability        0.25                 0.35                 0.30                 0.10

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