None A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% toevaluate projects. The project has uncertain costs and revenue as shown in the table below:NetInitial Cost ProbabilityProbabilityRevenue$110,000 0.25$30,0000.15$240,000 0.60$41,0000.55$320,000 0.15$53,0000.30Determine the risk for the project expressed as the standard deviation of the expected valueof the EUAW. Express your answer in $ to the nearest $100.

Step 1:According to given questions MARR =8% Life =10 EUAW =intial expectad cost…

Answered: A project has a life of 10 years and no…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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