Table 10
$$\begin{array} { | l | l | l | l | l | }
\hline \text { First Cost, } \$ & \$ 60,000 & \$ 80,000 & \$ 100,000 & \$ 120,000 \
\hline \text { Probability } & 0.25 & 0.35 & 0.30 & 0.10 \
\hline
\end{array}$$
-Find the expected EUAW from the financial data provided in the table for a new equipment. Because of the uncertainty of technology being used in this equipment, it has not been possible to get the initial cost accurately. The annual benefit, however, is estimated to be $25,000 with a possible equipment life of 5 years. The salvage value is expected to be 10% of the initial cost. MARR =8%
A) $2977
B) $5157
C) $3957
D) $4628

Question

Table 10
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { First Cost, } \$ & \$ 60,000 & \$ 80,000 & \$ 100,000 & \$ 120,000 \
\hline \text { Probability } & 0.25 & 0.35 & 0.30 & 0.10 \
\hline
\end{array}$$
-Find the expected EUAW from the financial data provided in the table for a new equipment. Because of the uncertainty of technology being used in this equipment, it has not been possible to get the initial cost accurately. The annual benefit, however, is estimated to be $25,000 with a possible equipment life of 5 years. The salvage value is expected to be 10% of the initial cost. MARR =8%
A) $2977
B) $5157
C) $3957
D) $4628

Quizplus · Accepted Answer

The Answer is B

Table 10 -Find the Expected EUAW from the Financial Data Provided in |