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A manufacturing firm is considering a project which has an economic service life of one year with no salvage value. The initial cost for the
A manufacturing firm is considering a project which has an economic service life of one year with no salvage value. The initial cost for the project is $1,650. There is a 0.24 probability that the year-end revenue is $2,290. There is a 0.54 probability that the year-end revenue is $3,130. There is a 0.22 probability that the year-end revenue is $4,580. If the firm's MARR is 13%, what is the expected value of the project?
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