A potential project has an initial capital investment of $85,000. Net annual revenues minus expenses...
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A potential project has an initial capital investment of $85,000. Net annual revenues minus expenses are estimated to be $50,000 (A$) in the first year and to increase at the rate of 6.06% per year. The useful life of the primary equipment, however, is uncertain, as shown in the following table. Assume that im = MARR = 12% per year and f = 6% per year. Useful Life, Years (N) p(N) 0.05 0.09 0.26 0.29 0.18 0.131 a. What are the E(PW) and SD(PW) for this project based on this information? E(PW) = $ 72,500 (Round to the nearest hundreds.) SD(PW) = $ 49,600 (Round to the nearest hundreds.) b. What is the Pr{PW 20}? Pr{PW 2 0} = 0.95 (Round to two decimal places.) c. What is the E(AW) in R$? E(AW)= $ (Round to the nearest hundreds.) A potential project has an initial capital investment of $85,000. Net annual revenues minus expenses are estimated to be $50,000 (A$) in the first year and to increase at the rate of 6.06% per year. The useful life of the primary equipment, however, is uncertain, as shown in the following table. Assume that im = MARR = 12% per year and f = 6% per year. Useful Life, Years (N) p(N) 0.05 0.09 0.26 0.29 0.18 0.131 a. What are the E(PW) and SD(PW) for this project based on this information? E(PW) = $ 72,500 (Round to the nearest hundreds.) SD(PW) = $ 49,600 (Round to the nearest hundreds.) b. What is the Pr{PW 20}? Pr{PW 2 0} = 0.95 (Round to two decimal places.) c. What is the E(AW) in R$? E(AW)= $ (Round to the nearest hundreds.)
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