This business question has 3 parts: A, B, and C. Any help?
The decision tree shows estimated values for the Equivalent Uniform Annual Worth (EUAW) of various scenarios for launching a new product. What is the expected value for EUAW at D1 that will maximize EUAW? In other words, what is the largest value of EV1 and EV2 that the decision maker will choose in order to maximize EUAW at D1? Don't enter a $ symbol - just the value rounded to the nearest dollar. 0.7 1000 EV3 0.3 2000 0.7 D2 EV1 0.6 1500 0.3 3000 EV4 0.4 D1 2500 0.6 500 EV2 0.4 3500 Suppose a company purchased a piece of equipment for $20,000. The equipment costs $1500 per year to maintain, and $300 per year to insure. The salvage value of the equipment starts at the purchase price and goes down by $1000 per year. If the interest rate is 12%, and if it has been 12 years since the equipment was purchased, what is the cost to own and maintain the equipment for one more year (i.e. the marginal cost)? Don't enter a $ symbol - just the value rounded to the nearest dollar. Tex is trying to decide if to purchase an oil well for $1,100,000. He estimates the well would produce 10,000 barrels of oil per year at a selling price of $30 per barrel. It would cost $40,000 per year in operating expenses to extract the oil. At the end of the estimated 5-year life of the well, it would cost an additional $50,000 to shut down operations and clean up the site. Calculate the rate of return on this investment. Use the compound interest tables from the FE Reference handbook to find the two interest values that bound the result, and then use linear interpolation to find the final result. Report your result as a number, rather than as a percent, with 4 digits of precision. For example, 20.769% would be entered as 0.2077. The decision tree shows estimated values for the Equivalent Uniform Annual Worth (EUAW) of various scenarios for launching a new product. What is the expected value for EUAW at D1 that will maximize EUAW? In other words, what is the largest value of EV1 and EV2 that the decision maker will choose in order to maximize EUAW at D1? Don't enter a $ symbol - just the value rounded to the nearest dollar. 0.7 1000 EV3 0.3 2000 0.7 D2 EV1 0.6 1500 0.3 3000 EV4 0.4 D1 2500 0.6 500 EV2 0.4 3500 Suppose a company purchased a piece of equipment for $20,000. The equipment costs $1500 per year to maintain, and $300 per year to insure. The salvage value of the equipment starts at the purchase price and goes down by $1000 per year. If the interest rate is 12%, and if it has been 12 years since the equipment was purchased, what is the cost to own and maintain the equipment for one more year (i.e. the marginal cost)? Don't enter a $ symbol - just the value rounded to the nearest dollar. Tex is trying to decide if to purchase an oil well for $1,100,000. He estimates the well would produce 10,000 barrels of oil per year at a selling price of $30 per barrel. It would cost $40,000 per year in operating expenses to extract the oil. At the end of the estimated 5-year life of the well, it would cost an additional $50,000 to shut down operations and clean up the site. Calculate the rate of return on this investment. Use the compound interest tables from the FE Reference handbook to find the two interest values that bound the result, and then use linear interpolation to find the final result. Report your result as a number, rather than as a percent, with 4 digits of precision. For example, 20.769% would be entered as 0.2077
