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Problem 12-13 (algorithmic) Question Help A potential project has an initial capital investment of $85,000. Net annual revenues minus expenses are estimated to be $40,000
Problem 12-13 (algorithmic) Question Help A potential project has an initial capital investment of $85,000. Net annual revenues minus expenses are estimated to be $40,000 (A$) in the first year and to increase at the rate of 6.76% per year. The useful life of the primary equipment, however, is uncertain, as shown in the following table. Assume that im = MARR = 16% per year and f= 3% per year. Useful Life, Years (N) P(N) 0.02 0.12 0.34 0.22 0.18 0.12 a. What are the E(PW) and SD(PW) for this project based on this information? E(P ound to the nearest hundreds.)
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