Question: please help :( Your company is evaluating whether to purchase an equipment or not. The initial cost is $43,087. According to your estimate, the equipment
please help :(


Your company is evaluating whether to purchase an equipment or not. The initial cost is $43,087. According to your estimate, the equipment can have annual savings of $6,536 with 0.4 possibility or have annual savings of $5,991. The useful life of the equipment is 10 years, and with equal chance to have a salvage value of $18,076 or $15,243. Given MARR =6%, what is the expected NPV of the equipment? For a residential building project, the developer has
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