Please don't use excel to these questions. This is Engineering Economic Analysis.

* Please show all the calculations and the procedure for solving the questions 1. Installing a new production line has an initial cost of $85,000, and it has no salvage value. The firm's interest is 12%. Following table shows the saving per year which is based on number of shifts per day, and the useful life of the product: i. What is the joint probability distribution for saving per year and useful life? (15 pts) ii. Define optimistic, most likely, and pessimistic scenarios by using both optimistic, both most likely, and both pessimistic estimates. Wha (15 pts) t is the present worth for each scenario Useful life Probability Shifts per dav Saving per year $14,000 $29,000 $43,000 Probability 0.33 0.45 0.22 (vears) 0.5 0.3 0.2 2. Installing new machinery will cost $170,000. The installation will result in following annual saving: (a) Optimistic scenario: $22,000 annual saving with 22% probability, (b) Most likely scenario: $12,000 annual saving with 48% probability, and (c) Pessimistic scenario: $4,000 annual saving with 30% probability. The interest rate can be 5% or 8% (equally likely) and the machinery should have a useful life of 40 years What is the present worth for each estimated value? What is the expected present worth (20 pts) Compute the standard deviation of the present worth. (10 pts)