Suppose that an asset costing $75,000 will result in an annual saving of $30,000 for as long

Question:

Suppose that an asset costing $75,000 will result in an annual saving of $30,000 for as long as the asset is serviceable. The probabilities that the asset will remain serviceable for a certain number of years are as follows:
No. of Yrs. Asset Functions (N)_______ Prob. Asset is Productive Exactly N Years [Probem (N)]
1............................................................................................................0.1
2............................................................................................................0.2
3............................................................................................................0.2
4............................................................................................................0.3
5............................................................................................................0.1
6............................................................................................................0.1
What is the expected net present worth (NPW) of the venture if the = 16%?
a. -$6,243
b. -$105,000
c. -$3,246
d. $6,243
e. $3,246
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...