Suppose for a project the following estimates are given as: Investment cost 1,000,000 TL (Deterministic value) 150,000 TL (Most likely estimate (probabilistic value) None Net annual benefits Salvage value Annual interest rate 8% (Deterministic value) Study Period 10 years Investigate the present worth at most likely estimate, - 10% and + 10% changes in net annual benefits and determine the decision reversal point.

Suppose for a project the following estimates are given as: Investment cost 1,000,000 TL (Deterministic value) 150,000 TL (Most likely estimate (probabilistic value) None Net annual benefits Salvage value Annual interest rate 8% (Deterministic value) Study Period 10 years Investigate the present worth at most likely estimate, - 10% and + 10% changes in net annual benefits and determine the decision reversal point.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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