The estimates for a project appear in the following table: Dear optimistic most likely pessimist Fixed cost($) 250,000 250,000 250,000 Annual profit ($) 20,000 15,000 8,000 Shelf life(years) 30 30 30 Residual value($) 000 to. Use the range of values to calculate the heavy average of benefits. b. Using the heavy average, calculate the Equivalent Average Present Value for this project. Use a MARR of 10%. Heavy average annual benefits =$ ; Average Present Value = $
The estimates for a project appear in the following table: Dear optimistic most likely pessimist Fixed cost($) 250,000 250,000 250,000 Annual profit ($) 20,000 15,000 8,000 Shelf life(years) 30 30 30 Residual value($) 000 to. Use the range of values to calculate the heavy average of benefits. b. Using the heavy average, calculate the Equivalent Average Present Value for this project. Use a MARR of 10%. Heavy average annual benefits =$ ; Average Present Value = $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![The estimates for a project appear in the following table:
Dear
optimistic most likely pessimist
Fixed cost($) 250,000 250,000 250,000
Annual profit ($) 20,000 15,000 8,000
Shelf life(years) 30 30 30
Residual value($) 000
to. Use the range of values to calculate the heavy average of benefits.
b. Using the heavy average, calculate the Equivalent Average Present Value for this project. Use a
MARR of 10%.
Heavy average annual benefits =$
; Average Present Value = $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5bf8e1e-f925-458c-92c8-f536803632f6%2Feaa4ebc5-dfe9-41c5-9c0d-366c2179cd69%2F37521s9_processed.png&w=3840&q=75)
Transcribed Image Text:The estimates for a project appear in the following table:
Dear
optimistic most likely pessimist
Fixed cost($) 250,000 250,000 250,000
Annual profit ($) 20,000 15,000 8,000
Shelf life(years) 30 30 30
Residual value($) 000
to. Use the range of values to calculate the heavy average of benefits.
b. Using the heavy average, calculate the Equivalent Average Present Value for this project. Use a
MARR of 10%.
Heavy average annual benefits =$
; Average Present Value = $
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