Modifying an assembly line has a first cost of $80,000 and its salvage value is $0. The firms interest rate is 9%. The savings shown in the table depend on whether the assembly line runs one, two or three shifts and on whether the product is made for 3 to 5 years. a. Give the joint probability distribution for savings per year and the useful life. b. Define the optimistic, most likely and pessimistic scenarios by using the joint probability from (a) and use them to calculate the present worth value for the three (3) scenarios.

3. Modifying an assembly line has a first cost of $80,000 and its salvage value is $0. The firm's interest rate is 9%. The savings shown in the table depend on whether the assembly line runs one, two or three shifts and on whether the product is made for 3 to 5 years Give the joint probability distribution for savings per year and the useful life Define the optimistic, most likely and pessimistic scenarios by using the joint probability from (a) and use them to calculate the present worth value for the three (3) scenarios a. b. Useful Life Probability 0.6 0.4 Useful Life (years) Shiftslday SavingslyearSavingslyear $15,000 30,000 45,000 Probability 0.3 0.5 0.2