MARR =5%

Study period 5 years

Perform Monte Carlo simulation using Python to generate the risk profiles for the PW of Projct A and Project B

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Initial Investment Cost Annual Benefits Salvage Value Useful Life Project A $250.000 $80,000 $20,000 Project B $160.000 $50,000 $10,000 5 years 5 years Probability Initial Investment Cost of Project B $120,000 $160,000 $200,000 0.2 0.6 0.2 Probability 0.1 Annual Benefits of Project A $40,000 $60,000 $80,000 $100,000 $120,000 0.2 0.4 0.2 0.1 Initial Investment Cost Annual Benefits Salvage Value Useful Life Project A $250.000 $80,000 $20,000 Project B $160.000 $50,000 $10,000 5 years 5 years Probability Initial Investment Cost of Project B $120,000 $160,000 $200,000 0.2 0.6 0.2 Probability 0.1 Annual Benefits of Project A $40,000 $60,000 $80,000 $100,000 $120,000 0.2 0.4 0.2 0.1