Question: Please use Excel to complete the problem Consider two alternative designs, A and B, for an investment opportunity. Suppose there is uncertainty concerning the Initial

 Please use Excel to complete the problem Consider two alternative designs,

Please use Excel to complete the problem

Consider two alternative designs, A and B, for an investment opportunity. Suppose there is uncertainty concerning the Initial Investment (P), Yearly Operating and Maintenance cost (O&M), and the Net Annual Revenue (R) The parameters are uniformly distributed with the possible values shown below Design A Min (a) Max (b) Parameters Initial Investment (P) $300,000 $350,000 1. $20,000 $25,000 2. Operating and Maintenance cost (O&M) Net annual revenue (R) $45,000 $56,000 3. Design B Min (a) Max (b) Parameters Initial Investment (P) $450,000 $530,000 1. Operating and Maintenance cost (O&M) 2. $15,000 $18,000 Net annual revenue (R) 3. $60,000 $66,000 Based on MARR= 15%, and 10 years planning horizon a) Compare the PW(A) and PW(B) based on the expected value of parameters Hint: If random variable X is uniformly distributed [X- U(a,b)], then its expected value is: E(X) 2 (ab)

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