The market value of a certain asset depends upon its useful life as follows: Useful Life 2 years 3 years 4 years Market Value $19,500 $11,000 $4,500 a. The asset requires a capital investment of $115,000, and MARR is 12% per year. Use Monte Carlo simulation and generate four trial outcomes to find its expected equivalent AW if each useful life is equally likely to occur. b. Set up an equation to determine the variance of the asset's AW. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. (Round a. Using the Monte Carlo simulation with the actually selected random numbers: 16,50, 31, 14, and RNm = 100, the expected equivalent AW is $ to the nearest hundreds.) b. The variance of the asset's AW is ($)2 million. (Round to two decimal places.) N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 12% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1200 0.8929 1.0000 0.8929 1.0000 1.2544 0.7972 2.1200 1.6901 0.4717 1.4049 0.7118 3.3744 2.4018 0.2963 1.5735 0.6355 4.7793 3.0373 0.2092 1.7623 0.5674 6.3528 3.6048 0.1574 1.9738 0.5066 8.1152 4.1114 0.1232 2.2107 0.4523 10.0890 4.5638 0.0991 2.4760 0.4039 12.2997 4.9676 0.0813 2.7731 0.3606 14.7757 5.3282 0.0677 3.1058 0.3220 17.5487 5.6502 0.0570 Capital Recovery Factor To Find A Given P AIP 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 The market value of a certain asset depends upon its useful life as follows: Useful Life 2 years 3 years 4 years Market Value $19,500 $11,000 $4,500 a. The asset requires a capital investment of $115,000, and MARR is 12% per year. Use Monte Carlo simulation and generate four trial outcomes to find its expected equivalent AW if each useful life is equally likely to occur. b. Set up an equation to determine the variance of the asset's AW. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. (Round a. Using the Monte Carlo simulation with the actually selected random numbers: 16,50, 31, 14, and RNm = 100, the expected equivalent AW is $ to the nearest hundreds.) b. The variance of the asset's AW is ($)2 million. (Round to two decimal places.) N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 12% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1200 0.8929 1.0000 0.8929 1.0000 1.2544 0.7972 2.1200 1.6901 0.4717 1.4049 0.7118 3.3744 2.4018 0.2963 1.5735 0.6355 4.7793 3.0373 0.2092 1.7623 0.5674 6.3528 3.6048 0.1574 1.9738 0.5066 8.1152 4.1114 0.1232 2.2107 0.4523 10.0890 4.5638 0.0991 2.4760 0.4039 12.2997 4.9676 0.0813 2.7731 0.3606 14.7757 5.3282 0.0677 3.1058 0.3220 17.5487 5.6502 0.0570 Capital Recovery Factor To Find A Given P AIP 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770