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The design of a system is to be pursued from one of two

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The design of a system is to be pursued from one of two available alternatives. Each alternative has a life-cycle cost associated with an expected future. The costs for the corresponding futures are given in the following table (in millions of dollars). If the probabilities of occurrence of the futures are 30%, 50%, and 20%, respectively, which alternative is most desirable from an expected cost viewpoint. Use an interest rate of 10%?

Reference no: EM13599997

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