A company is considering a project that has a 70% probability of producing $5,000 in annual benefits
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A company is considering a project that has a 70% probability of producing $5,000 in annual benefits and a 30% probability of producing 10,000 annual benefits. For each probability there is 75% chance that the project life will be only 5 years but a 25% chance that the project life will be 10 years. If the initial investment for the project is $30,000 and the firm\'s MARR is 12% determine the expected present worth of the project and B the probability that the present worth would be negative.
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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