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.

Understanding Management (MindTap Course List)
10th Edition
ISBN:9781305502215
Author:Richard L. Daft, Dorothy Marcic
Publisher:Richard L. Daft, Dorothy Marcic
ChapterP6: Part 6: Integrative Case
Section: Chapter Questions
Problem 3IC
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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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