Your company is evaluating whether to purchase an equipment or not. The initial cost is $40,352. According to your estimate, the equipment can have annual savings of $ 6,205 with 0.5 possibility or have annual savings of $5,345. The useful life of the equipment is 10 years, and with equal chance to have a salvage value of $19,036 or \$16,439 Given MARR=6\%. what is the expected NPV of the equipment? (10 points)

Your company is evaluating whether to purchase an equipment or not. The initial cost is $40,352. According to your estimate, the equipment can have annual savings of $6,205 with 0.5 possibility or have annual savings of $5,345. The useful life of the equipment is 10 years, and with equal chance to have a salvage value of $19,036 or $16,439. Given MARR =6%, what is the expected NPV of the equipment? ( 10 points)