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A distribution company wants to implement a voice recognition distribution center . The initial investment is known and deterministic for$3,5000,000(MACRS 5-year property class). However, the
A distribution company wants to implement a voice recognition distribution center . The initial investment is known and deterministic for$3,5000,000(MACRS 5-year property class). However, the revenue (R), O&M (O), and salvage (S), are random according to the probability distributions shown below. The planning horizon is six years. The firm uses a MARR 12% and a tax rate of 25%. The probability distributions of the random variables are as follows:
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