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A company is considering buying an additional snow removal equipment to expand its operation to commercial and retail store parking lots. The cost of the
A company is considering buying an additional snow removal equipment to expand its operation to commercial and retail store parking lots. The cost of the removal equipment is 12,000. The company is uncertain of the revenue, operating costs, and salvage value. Therefore, they have come to a consensus among them to asses a beta distribution probabilities for each of the parameters. The company uses a MARR of 10% and a planning horizon of 5 years. Perform a decision tree analysis to determine the expected present worth and the probability that the investment will be feasible
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