Question 18.17: Uncertain N Requires Probability Distribution for PW for Exa...
Uncertain N Requires Probability Distribution for PW for Exact Answer
Aproject has a first cost of $22,000, no salvage value, and a net annual benefit of $4000. The firm uses an interest rate of 12%. The benefits may last 5, 10, or 15 years, with respective probabilities of 20%, 60%, and 20%. What is the expected value of the PW?
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