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Your firm is implementing a new energy efficiency project. The initial cost will be $225.000, and the useful life of the needed equipment is 7
Your firm is implementing a new energy efficiency project. The initial cost will be $225.000, and the useful life of the needed equipment is 7 years. The firm is uncertain about the annual savings. The optimistic value for the savings is $35.000) per year, the most likely value is $28,000 per year, and the pessimistic value is S15,000 per year. The MARR is 10%. a) Use the range of estimates to compute the incan annual savings by the bela distribution, and determine the net present worth of the project based on this mean annual savings. b) For this part only, assume that the probability of the optimistic savings is 2. the probability to the most likely savings is.55. and the probability of the pessimistic savings is 25. Compute the expected value for the annual savings, and the corresponding nct present worth
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