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A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has
A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below:
Initial Cost | Probability | Net Revenue | Probability | |
$140,000 | 0.25 | $30,000 | 0.15 | |
$220,000 | 0.60 | $43,000 | 0.55 | |
$330,000 | 0.15 | $52,000 | 0.30 |
Determine the risk for the project expressed as the standard deviation of the expected value of the EUAW. Express your answer in $ to the nearest $100.
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