Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 12, Problem 24P
To determine

Calculate the time period.

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Calculate expected value of a probability distribution. Decisions Recognizing Risk
Miguel is trying to decide whether or not to replace the windows on his house. Miguel estimates that installing new windows would cost $11,000 and would save him $2,000 per year in energy costs. Assume a MARR of 10% and a useful life of 10 years. Compute the AW of this decision. Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±10.
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