A new CNC mill is expected to cost \(\$ 263,000\) and have a useful life of 6 years. The net annual savings generated by the mill are independent from year to year and are estimated to follow a uniform distribution with a lower bound of \(\$ 60,000\) and an upper bound of \(\$ 70,000\). MARR is 12 percent/year.

For the following question, determine an analytical solution:

a. Determine the probability that the present worth of the CNC mill is positive. For the following questions, determine a simulation solution using @RISK:

b. Using a Latin hypercube simulation with 10,000 iterations, estimate the probability that the present worth of the CNC mill is positive.

c. Using a Monte Carlo simulation with 10,000 iterations, estimate the mean and standard deviation of present worth; the present worth of the CNC mill is positive.