Question
A company is considering an investment with the following annual benefits and annual costs with the probability of each: Annual Benefit Probability Annual Cost Probability
A company is considering an investment with the following annual benefits and annual costs with the probability of each:
| Annual Benefit | Probability | Annual Cost | Probability |
| $6,000 | 70% | $4000 | 50% |
| $10,000 | 30% | $6,000 | 30% |
| $8,000 | 20% |
a. What is the most likely benefit - cost
b. What is the expected value of Annual Benefit - Annual Cost?
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Economics And The Environment A Materials Balance Approach
Authors: Allen V Kneese, Robert U Ayres, Ralph C D'Arge
1st Edition
1317402251, 9781317402251
