The energy efficiency project described in Problem 10-23 has a first cost of $150,000, a life of 10 years, and no salvage value. Assume that the interest rate is 8%.

a) What is the equivalent uniform annual worth for the expected annual savings?

b) Compute the equivalent uniform annual worth for the pessimistic, most likely, and optimistic estimates of the annual savings. What is the expected value of the equivalent uniform annual worth?

c) Do the answers to (a) and (b) match? Why or why not?

(Problem #23: Annual savings due to an energy project have a most likely value of $30,000. The high estimate of $40,000 has a probability of .25 and the low estimate of $20,000 has a probability of .35.)