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The following payoff matrix indicates the expected profits associated with three decision options and three states of nature: Select the decision option that should be

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The following payoff matrix indicates the expected profits associated with three decision options and three states of nature: Select the decision option that should be selected for i) the maximin rule, ii) the maximax rule, iii) the Laplace rule, iv) the Hurwicz rule with 0 = 0.25. An item of energy-efficient equipment can be installed for $20.000. and which is expected to have a salvage value of $5,000 after 20 years, is expected to save S8.000 in energy costs per year. i) What is the rate of return if the equipment is in operation for 20 years? ii) For what lifetime will the equipment give a return of 10%

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