Determine what is the present worth for each scenario

Assignment Help Econometrics

Reference no: EM13234331

Modifying an assembly line has a first cost of $80,000 and its salvage value is $0. The firm's interet rate is 9%. The savings shown in the table depend on whether the assembly line runs one, two or three shifts, and on whether the product is made for 3 or 5 years

Shift/days Savings/year probability --- useful life years probability
1 $15,000 0.3 3 0.6
2 $30,000 0.5 5 0.4
3 $45,000 0.2

A)Give the joint probability distribution for savings per year and the useful life.

B)Define optimistic, most likelys, and pestimistic scenarios buy using both optimistic, both most likely and both pestimistic estimates. Use a life of 4 years as the most likey value. What is the present worth for each scenario

Reference no: EM13234331

Questions Cloud

The carbon-nuclide radioactively decays by positron emission : The carbon- nuclide radioactively decays by positron emission. Write a balanced nuclear chemical equation that describes this process.

American revolution with the french revolution : Compare and contrast the American Revolution with the French Revolution. What similarities and differences do you see?

Give cfg for the following language : Give CFG for the language L={x %u03F5 {0,1}*/x has unequal number of 0's and 1's}

How were the war of austrian succession : How were the War of Austrian Succession and the Seven Years’ War related, what were the political, military, and economic outcomes of the fighting, and how was the balance of power in Europe affected?

Determine what is the present worth for each scenario : Define optimistic, most likelys, and pestimistic scenarios buy using both optimistic, both most likely and both pestimistic estimates. Use a life of 4 years as the most likey value. What is the present worth for each scenario

Explain what is the maximum amount of aluminum acetate : There are 250g of Acetic Acid and 250g of Aluminum Hydroxide. What is the maximum amount of Aluminum Acetate that can be produced and which ingredient is the limiting reactant

Political developments in russia : Given the political developments in Russia and the former Soviet-dominated states, evaluate the progress of democracy and capitalist development after the end of communism.

Ideology and his career as pope : What elements of John Paul II's biography do you think shaped his ideology and his career as Pope?

Discuss the different program errors that likely to occure : discuss the different program errors that are likely to occur and how they should be handled within scripts

User Account

All Pages