Question: A robot has just been installed at a cost of $81,000. It will have no salvage value at the end of its useful life. Given

A robot has just been installed at a cost of $81,000. It will have no salvage value at the end of its useful life. Given the following estimates and probabilities for the yearly savings and useful life, determine the expected rate of return.

Savings Useful Probability Life (Years) Probability Per year $18,000 0.2 1/6 12 2/3 0.7 5 20,000 22,000 0.1 1/6 4.

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E savings 218K 720K 1022K 19800 E life 164 235 1612 6 years 0 8100... View full answer

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