A new products sales and profits are uncertain. The marketing department has predicted that sales might be as high as 9000 units per year with a probability of 15%. The most likely value is 6000 units annually. The pessimistic value is estimated to be 3500 units annually with a probability of 25%. Manufacturing and marketing together have estimated the most likely unit profit to be $33. The pessimistic value of $26 has a probability of .25 and the optimistic value of $37 has a probability of .3. The firm uses an interest rate of 8%. The products life is estimated to be 12 years. It will require an investment of $1 million and will have a salvage value of $100,000. Calculate the expected value of the present worth and the standard deviation. Is the project risky?

EV:

Standard Deviation:

Risk:

>>>>>>>> PLEASE ANSWER WITH PRESENT WORTH AND STANDARD DEVIATION Question 5 Not yet answered Marked out of 6.00 P Flag question A new product's sales and profits are uncertain. The marketing department has predicted that sales might be as high as 9000 units per year with a probability of 15%. The most likely value is 6000 units annually. The pessimistic value is estimated to be 3500 units annually with a probability of 25%. Manufacturing and marketing together have estimated the most likely unit profit to be $33. The pessimistic value of $26 has a probability of .25 and the optimistic value of $37 has a probability of 3. The firm uses an interest rate of 8%. The product's life is estimated to be 12 years. It will require an investment of $1 million and will have a salvage value of $100,000. Calculate the expected value of the present worth and the standard deviation. Is the project risky? EV: Standard Deviation: Risk: Safe Risky Can't Say Question 5 Not yet answered Marked out of 6.00 P Flag question A new product's sales and profits are uncertain. The marketing department has predicted that sales might be as high as 9000 units per year with a probability of 15%. The most likely value is 6000 units annually. The pessimistic value is estimated to be 3500 units annually with a probability of 25%. Manufacturing and marketing together have estimated the most likely unit profit to be $33. The pessimistic value of $26 has a probability of .25 and the optimistic value of $37 has a probability of 3. The firm uses an interest rate of 8%. The product's life is estimated to be 12 years. It will require an investment of $1 million and will have a salvage value of $100,000. Calculate the expected value of the present worth and the standard deviation. Is the project risky? EV: Standard Deviation: Risk: Safe Risky Can't Say