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Question 2: (This one is from an old midterm!) A robot has just been installed at a cost of $81,000. Due to working in hazardous

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Question 2: (This one is from an old midterm!) A robot has just been installed at a cost of $81,000. Due to working in hazardous conditions, it will have a negative salvage value (disposal fee) of $10,000 at the end of its useful life in 10 years. It has the following estimates and probabilities for yearly savings: Savings per year Probability $19,000 0.2 $22,000 0.7 $25,000 0.1 Parta - What is the expected value of the yearly savings? Par b - Draw the cash flow diagram and set up the problem to compute the rate of return for this investment Paric - if the MARR for the company is 15%, is this a good investment

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