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A continuous improvement has helped a company to raise savings with associated robabilities shown below. The useful life is 5 years with a probability of

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A continuous improvement has helped a company to raise savings with associated robabilities shown below. The useful life is 5 years with a probability of 0.6 and 3 years with a probability of 0.4. There is no expected salvage. Evaluate the risk (by standard worth of investment of $50,000. Use a MARR of 10%. deviation) involved in the Present Annual Benefit (S) Probability 15,000 20000 25000 0.25 0.45 0.3

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