Find the probability distribution and the expected PW to modify an assembly line. The first cost is

Question:

Find the probability distribution and the expected PW to modify an assembly line. The first cost is $80,000, and its salvage value is $0. The firm’s interest rate is 9%. The savings shown in the table depend on whether the assembly line runs one, two, or three shifts, and on whether the product is made for 3 or 5 years.

Shifts/day Useful Life (years) Probability 0.6 Savings/year Probability 0.3 3 $15,000 2 30,000 0.5 5 0.4 3 45,000 0.2 3.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...