A continuous improvement has helped a company to raise savings with associated probabilities shown in the table below. The useful life is 5 years with a probability of0.6 and 3 years with probability of 0.4.
i. Determine the joint probability distribution for savings per year and useful life.
ii. Determine the expected NPW if an investment of $50,000 is required. No salvage is expected. Use a MARR of 10%
$$\begin{array} { | l | l | }
\hline \text { Annual Benefit } & \text { Probability } \
\hline \$ 15.000 & 0.25 \
\hline \$ 20,000 & 0.45 \
\hline \$ 25,000 & 0.3 \
\hline
\end{array}$$

Question

A continuous improvement has helped a company to raise savings with associated probabilities shown in the table below. The useful life is 5 years with a probability of0.6 and 3 years with probability of 0.4.
i. Determine the joint probability distribution for savings per year and useful life.
ii. Determine the expected NPW if an investment of $50,000 is required. No salvage is expected. Use a MARR of 10%
 $$\begin{array} { | l | l | } 
\hline \text { Annual Benefit } & \text { Probability } \
\hline \$ 15.000 & 0.25 \
\hline \$ 20,000 & 0.45 \
\hline \$ 25,000 & 0.3 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of A continuous improvement has helped a company to raise savings with associated probabilities shown in the table below. The useful life is 5 years with a probability of0.6 and 3 years with probability of 0.4.
i. Determine the joint probability distribution for savings per year and useful life.
ii. Determine the expected NPW if an investment of $50,000 is required. No salvage is expected. Use a MARR of 10%
 $$\begin{array} { | l | l | } 
\hline \text { Annual Benefit } & \text { Probability } \
\hline \$ 15.000 & 0.25 \
\hline \$ 20,000 & 0.45 \
\hline \$ 25,000 & 0.3 \
\hline
\end{array}$$

A Continuous Improvement Has Helped a Company to Raise Savings