Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How can I get these numbers (P, ML, O) that are in the second table? Consider investment in a new crane. Assume a MARR of
How can I get these numbers (P, ML, O) that are in the second table?
Consider investment in a new crane. Assume a MARR of 8%. Estimation Condition Optimistic Most likely Pessimistic (0) (M) (P) $240,000 $270,000 $340,000 8 yr 5 yr $20,000 $15,000 $8,000 $100,000 $80,000 $50,000 $10,000 $15,000 $20,000 Investment, 1 Useful life, Market valuc, MY Annual revenues, R Amual expenses, E 10 x Pause and Solve Considering O-MI-P for I and R (fix F, MV, and life at their M. levels). Value in each cell is the PW for the project. Investment, Revenues, R Optimistic (0) Most Likely (M) Pessimistic (1) Optimistic, (0) $256,568 $226,568 $156,568 Most likely, (M) $141,636 $111,636 S41,636 Pessimistic, (P) -$30,764 -$60,764 -$130,764 This suggests that perhaps some additional effort should be place on getting refined estimates of revenues. Of course, the complete study needs to consider the other factorsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started