Do the answers for the expected pw match

Reference no: EM132165307

Question: For the data in Problem, compute the standard deviation of the present worth.

Problem: An energy efficiency project has a first cost of $300,000, a life of 10 years, and no salvage value. Assume that the interest rate is 9%. The most likely value for annual savings is $60,000. The optimistic value for annual savings is $80,000 with a probability of 0.2. The pessimistic value is $40,000 with a probability of 0.3.

(a) What is the expected annual savings and the expected PW?

(b) Compute the PW for the pessimistic, most likely, and optimistic estimates of the annual savings. What is the expected PW?

Reference no: EM132165307

Questions Cloud

What is the main purpose of the article by kaplan : What is the main purpose of the article by Kaplan? What is Kaplan's main historical question? What is Kaplan's main conclusion/thesis?

What are the expected value and standard deviation : A factory's power bill is $55,000 a year. The first cost of a small geothermal power plant is normally distributed with a mean of $150,000.

What are the standard deviation of the present worth : A project's first cost is $25,000, and it has no salvage value. The interest rate for evaluation is 7%. The project's life is from a discrete uniform.

Calculate the expected return and risk : The Graham Telephone Company may invest in new switching equipment. There are three possible outcomes, having net present worth of $6570, $8590, and $9730.

Do the answers for the expected pw match : An energy efficiency project has a first cost of $300,000, a life of 10 years, and no salvage value. Assume that the interest rate is 9%.

What is the pw for each estimated value : For the data in Problem, compute the standard deviation of the present worth. 10-50 For the data, compute the standard deviation of the present worth.

What approach does the author take : What is noteworthy about the reading and how is it informing you about the topic? What approach does the author take?

Compute the standard deviation of the equivalent annual cost : A road between Fairbanks and Nome, Alaska, will have a most likely construction cost of $4 million per mile. Doubling this cost is considered.

Name at least two examples of this covenant in the jewish : Discuss the significance of the "special covenant" between the Jewish people and God.

User Account

All Pages