Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 12, Problem 3P

A new snow making machine utilizes technology that permits snow to be produced in ambient temperature of 70 degrees Fahrenheit or below. The estimated cash flows for the ski resort contemplating this investment are uncertain as shown below (note: pr. = probability).

Chapter 12, Problem 3P, A new snow making machine utilizes technology that permits snow to be produced in ambient

The machine is expected to have a useful life of 12 years, and the MARR of the ski resort is 8% per year. What is the expected present worth of this investment?

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