A project with uncertainty is under consideration for implementation. The values are shown in the table below. Calculate the Expected Value of the Net Present Worth of this project. FC Annual Benefit $50,000 $22,000 $37,000 $20,000 $5,000 ProbaR Proba 23% 35% 21% 27% 65% 10% 7% 7% 8 7% 7% 7% 7% ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) 43% 55% 35% 75% 85% 5% 10 10 10 $95,000 E co co co

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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A project with uncertainty is under consideration for implementation. The
values are shown in the table below. Calculate the Expected Value of the Net
Present Worth of this project.
n
Proba
FC
Annual Benefit
ProbaB
7%
($100,500)
($100,500)
($100,500)
($100,500)
($100,500)
($100,500)
$50,000
$22,000
$37,000
$20,000
$5,000
$95,000
8
23%
43%
55%
35%
7%
8.
35%
7%
8
21%
7%
7%
7%
27%
65%
10
75%
10
85%
10
10%
5%
Transcribed Image Text:A project with uncertainty is under consideration for implementation. The values are shown in the table below. Calculate the Expected Value of the Net Present Worth of this project. n Proba FC Annual Benefit ProbaB 7% ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) $50,000 $22,000 $37,000 $20,000 $5,000 $95,000 8 23% 43% 55% 35% 7% 8. 35% 7% 8 21% 7% 7% 7% 27% 65% 10 75% 10 85% 10 10% 5%
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