Question 1 6 pts A new piece of equipment at a cost of $30,000 is expected to reduce labor costs by $10,000 per year. Estimates of the useful life of the equipment range from an optimistic 14 years to a pessimistic 4 years. The most likely value is 6 years. Using the range of estimates to compute the mean life and assuming no salvage value, the estimated rate of return is approximately O 27.1% O 12.6% 24.3% O 32.7% Question 2 4 pts A developer wants to make an investment of $120,000 on a piece of commercial property. He believes that there is a 45% chance that he can sell the property for $220,000 if he sells the property after 1 year, a 30% chance that he will set it for $150,000, and a 25% chance that he will sell it for $100,000. What is the expected value of the investment? $169,000 $ 187,500 191,000 $170,000 Question 3 10 pts Complete the following table (fill in the missing probability distributions and calculate the joint distribution): Life (years) Value Porbability (%) Salvage Value Value Porbability (%) Joint Probability (%) 10 $7,500 60 7 60 7,500 4 15 7,500 10 5,000 7 5,000 4 5,000