Question: 9. Below is a table for a project where you obtained quotes based upon the most likely, pessimistic and optimistic numbers. Calculate the Expected value

 9. Below is a table for a project where you obtained

9. Below is a table for a project where you obtained quotes based upon the most likely, pessimistic and optimistic numbers. Calculate the Expected value for each Item if the MARR is set to 6%. Item Pessimistic 750 Quotes Most Likely 425 Optimistic 225 25% 40% 35% First Costs, $ Probability (First Costs) Annual Benefits, $ Probability (Annual Benefits) 30 50 80 10% 60% 30%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!