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An investment of $27,000 is expected to generate annual revenue of $6,000 throughout its expected life .

The risk is based on the life investment. The estimate of probabilities for investment's life is given in the table below.

There is no salvage value. Using a value of 7.00% MARR state the expected value (EV) of the present worth associated with the purchase.

Life years

8

9

10

Probability

0.2

0.5

0.3

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92775490

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