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Optimistic Most Likely Pessimistic Annual benefit $10000 $8000 $5000 Probability P($10000) 60% 25% Life, in years 10 6 4 Probability P(9) P(6)=2P(9) 10% Assume
Optimistic Most Likely Pessimistic Annual benefit $10000 $8000 $5000 Probability P($10000) 60% 25% Life, in years 10 6 4 Probability P(9) P(6)=2P(9) 10% Assume 10% interest rate, Fill the following table according to the info provided above: First Annual Joint PW Joint Probability Cost Benefit Probability Life Probability NPW Probability $5,000 4 8,000 4 10,000 4 $5,000 6 $3,224 $25,000 (Certain) 8,000 6 9,842 10,000 9 18,553 5,000 10 8,000 10 10
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