AZ Technologies, a manufacturer of amplified pressure transducers, is trying to decide between a dual-speed and a variable-speed machine. The engineers are not sure about the salvage value of the variable-speed machine, so they have asked several different used-equipment dealers for estimates. The results can be summarized as follows: there is a 35% chance of getting $19,000: a 41% chance of getting $23,000; and a 13% chance of getting $37000. Also, there is an 11% chance that the company may have to pay $5.000 to dispose of the equipment. Calculate the expected salvage value. The salvage value is $
AZ Technologies, a manufacturer of amplified pressure transducers, is trying to decide between a dual-speed and a variable-speed machine. The engineers are not sure about the salvage value of the variable-speed machine, so they have asked several different used-equipment dealers for estimates. The results can be summarized as follows: there is a 35% chance of getting $19,000: a 41% chance of getting $23,000; and a 13% chance of getting $37000. Also, there is an 11% chance that the company may have to pay $5.000 to dispose of the equipment. Calculate the expected salvage value. The salvage value is $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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