Question: Find the probability distribution and the expected PW to modify an assembly line. The first cost is $80,000, and its salvage value is $0. The

Find the probability distribution and the expected PW to modify an assembly line. The first cost is $80,000, and its salvage value is $0. The firm’s interest rate is 9%. The savings shown in the table depend on whether the assembly line runs one, two, or three shifts, and on whether the product is made for 3 or 5 years.

Shifts/day Useful Life (years) Probability 0.6 Savings/year Probability 0.3 3 $15,000 2 30,000 0.5 5 0.4 3 45,000 0.2 3.

Shifts/day Useful Life (years) Probability 0.6 Savings/year Probability 0.3 3 $15,000 2 30,000 0.5 5 0.4 3 45,000 0.2 3. 3.

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