The optimistic, most likely, and pessimistic estimates for a certain investment project are as shown in the accompanying table. MARR = 0.14. Optimistic Most Likely Pessimistic Capital Investment 78000 90000 116000 Net Annual Cash Flow 38000 31000 18000 Market Value 31000 21000 5000 Useful Life 12 9 5 It is thought that the most critical factors are useful life and net annual cash flow. Complete the table below showing the net AW for a combinations of the estimates for these two factors, assuming all other factors to be at their most likely values. Net Annual Cash м Р Useful O 22870 15870 M B 14111 1111 P 14962 C -5038 In the table above, the value of ( A) = A Life In the table above, the value of ( B ) = In the table above, the value of ( C ) =

The optimistic, most likely, and pessimistic estimates for a certain investment project are as shown in the accompanying table. MARR = 0.14. Optimistic Most Likely Pessimistic Capital Investment 78000 90000 116000 Net Annual Cash Flow 38000 31000 18000 Market Value 31000 21000 5000 Useful Life 12 9 5 It is thought that the most critical factors are useful life and net annual cash flow. Complete the table below showing the net AW for a combinations of the estimates for these two factors, assuming all other factors to be at their most likely values. Net Annual Cash м Р Useful O 22870 15870 M B 14111 1111 P 14962 C -5038 In the table above, the value of ( A) = A Life In the table above, the value of ( B ) = In the table above, the value of ( C ) =

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The optimistic, most likely, and pessimistic estimates for a certain investment project are as shown in the
accompanying table. MARR = 0.14.
Optimistic Most Likely Pessimistic
Capital Investment
78000
90000
116000
Net Annual Cash Flow 38000
31000
18000
Market Value
31000
21000
5000
Useful Life
12
9
5
It is thought that the most critical factors are useful life and net annual cash flow. Complete the table below showing the net AW for all
combinations of the estimates for these two factors, assuming all other factors to be at their most likely values.
Net Annual Cash
м Р
Useful O 22870 15870
м в 14111 1111
A
Life
Р 14962 с -5038
In the table above, the value of ( A) =
In the table above, the value of ( B ) =
In the table above, the value of (C) =

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