Optimistic Most Pessimistic Likely Cost $950 $1000 $1200 Net 220 200 160 annual benefit Salvage value Useful 12 10 8 life in years Calculate the rate of return for each estimate, using Excel. Calculate the mean cost, the mean net annual benefit, the mean useful life Calculate the mean rate of return on Excel.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Optimistic
Most
Pessimistic
Likely
Cost
$950
$1000
$1200
Net
220
200
160
annual
benefit
Salvage
value
Useful
12
10
8
life in
years
i. Calculate the rate of return for each estimate,
using Excel.
ii. Calculate the mean cost, the mean net annual
benefit, the mean useful life
ii. Calculate the mean rate of return on Excel.
Transcribed Image Text:Optimistic Most Pessimistic Likely Cost $950 $1000 $1200 Net 220 200 160 annual benefit Salvage value Useful 12 10 8 life in years i. Calculate the rate of return for each estimate, using Excel. ii. Calculate the mean cost, the mean net annual benefit, the mean useful life ii. Calculate the mean rate of return on Excel.
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