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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:
D Question 3 1 pts 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 ProbabilityRevenue $110,000 0.25 $250,000 0.60 $300,000 0.15 Net Probability $33,000 0.15 $43,000 0.55 $51,000 0.30 Determine the EUAW for the combination of inital cost and revenue with the highest probability of occurence. Express your answer in $ to the nearest $100Step by Step Solution
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