Question 34 What is the standard deviation of an expansion with the following forecasted net...
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Question 34 What is the standard deviation of an expansion with the following forecasted net present values and probabilities? (to the nearest $) Forecast V1 Pi Optimistic $23,000 0.25 Most Likely 10,000 0.45 Pessimistic -3,000 0.30 1) not enough information to properly calculate an answer 2) none of the other answers are correct x 3) = 59,641 4) - $9.619 Question 38 Which truck should Joe and Tonya Awes purchase if their after-tax discount rate is 5% and the other relevant information about the two trucks is: Truck A Truck B Original Cost: $23,000 518,600 Projected Economic Life: 4 Years 3 Years Projected After Tax Annual Cash Outflows: $4.000 $3,800 Salvage (Terminal and at replacement) $3,500 $3.000 1) VOA) - 5-85,745: VO(B) = 5-83.830, therefore choose Truck B 2) VO(A) - $-85.745. VO(B) - 5-83,830, therefore choose Truck A * 3) VO(A) - $-85,745: VO(B) = 5-87.085, therefore choose Truck B 4) VOA) - 5-85.745: VO(B) - 5-85.783, therefore choose Truck A
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