The PW value for an alternative is expected to be one of two values based on bids

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The PW value for an alternative is expected to be one of two values based on bids from two vendors. Your office partner told you that the low bid is $3200 per year. If she indicates a chance of 70% of accepting the high bid and that her expected PW is $5875, what is the PW of the high bid?

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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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