Question
Consider a proposed ultrasound inspection device for which the optimistic, and most likely, pessimistic estimates are given in Table 11-1. The MARR is 8% per
Consider a proposed ultrasound inspection device for which the optimistic, and most likely, pessimistic estimates are given in Table 11-1. The MARR is 8% per year. Also shown at the following table are the AWs for all three estimation conditions. Based on this information, analyze the combined effects of uncertainty in the factors on the AW value.please do this in excel ~thank you~
Optimistic (O) | Most Likely (ML) | Pessimistic (P) | |
Capital investment | $12,000 | $15,000 | $18,000 |
Useful life | 18 years | 10 years | 8 years |
Market value, MV | 1000 | 500 | 0 |
Annual revenues, R | $110,000 | 70,000 | 50,000 |
Annual expenses, E | $20,000 | $43,000 | $57,000 |
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