Question: Can someone please help I'm on my last attempt A potential project has an initial capital investment of $85,000. Net annual revenuess minus expenses are

Can someone please help I'm on my last attempt

Can someone please help I'm on my last attempt A potential project

A potential project has an initial capital investment of $85,000. Net annual revenuess minus expenses are estimated to be $40,000 (A$) in the first year and to increase at the rate of 6.76% per year. The useful life of the primary equipment, however, is uncertain, as shown in the following table. Assume that im MARR 16% per year and f 3% per year. Useful Life, Years (N) P(N) 0.02 1 2 0.12 3 0.34 4 0.22 0.18 5 6 0.12 a. What are the E(PW) and SD(PW) for this project based on this information? E(PW) $29836 (Round to the nearest hundreds.) SD(PW) $33207 (Round to the nearest hundreds.) b. What is the Pr{PW 2 0}? Pr{PW2 0 86 (Round to two decimal places.) c. What is the E(AW) in R$? E(AW) $ (Round to the nearest hundreds.) A potential project has an initial capital investment of $85,000. Net annual revenuess minus expenses are estimated to be $40,000 (A$) in the first year and to increase at the rate of 6.76% per year. The useful life of the primary equipment, however, is uncertain, as shown in the following table. Assume that im MARR 16% per year and f 3% per year. Useful Life, Years (N) P(N) 0.02 1 2 0.12 3 0.34 4 0.22 0.18 5 6 0.12 a. What are the E(PW) and SD(PW) for this project based on this information? E(PW) $29836 (Round to the nearest hundreds.) SD(PW) $33207 (Round to the nearest hundreds.) b. What is the Pr{PW 2 0}? Pr{PW2 0 86 (Round to two decimal places.) c. What is the E(AW) in R$? E(AW) $ (Round to the nearest hundreds.)

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!