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The 1st cost of a piece of new manufacturing equipment follows a normal distribution with a mean of $50,000 and a standard deviation of $2,500.
The 1st cost of a piece of new manufacturing equipment follows a normal distribution with a mean of $50,000 and a standard deviation of $2,500. The annual benefit follows a normal distribution with a mean of $10,000 and a standard deviation of $2,500. The life of the equipment follows a discrete uniform distribution with integer values 10, 11, 12 and 13 years. Assume an interest rate of 6%. Run 10 simulations and calculate both the expected value and standard deviation of the present worth?
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