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Question 9 : A proposed investment of $ 9 0 0 0 will produce annual revenues of $ 4 0 0 0 . The investment

Question 9: A proposed investment of $9000 will produce annual revenues of $4000. The
investment risk is how long the revenue stream will continue. The given estimate of
probabilities for the investment's duration appears reasonable.
Regardless of N, there will be no salvage value, and a before tax rate of return of 15% is
required. What are the expected present worth of the investment and its variance?
Determine the probability of positive present worth?
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