2. A robot has just been installed at the local McDonald's at a cost of...

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2. A robot has just been installed at the local McDonald's at a cost of $50,000. It will have the salvage value of $4,000 at the end of its useful life (probably sold to a mom and pop restaurant). us useful life (prob Savings per year $10,000 $11,000 $12,000 Probability 0.2 0.5 0.3 Useful life (years) 10 7 5 Probability 0.1 0.6 0.3 2.1 What is the joint probability distribution for savings per year and useful life (9 joint probabilities)? 2.2 What is the rate of return for the optimistic scenario? Optimistic is $12,000,10 years, the highest return. Use interpolation with the interest rates of 20% and 25%. 2.3 What is the rate of return for the pessimistic scenario? Pessimistic is $10,000 and 5 years. Use interpolation with the interest rates of 2% and 4%

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