What is the expected value for the annual savings

Reference no: EM13698885

Annual savings due to energy efficiency thermo well have a most likely value of $30,000. The most optimistic value is $40,000 with a probability of 0.2 and a most pessimistic value of $20,000 at 0.3. The First Cost is $150,000, the interest rate 10%, and the project has a life of 10 years with no salvage value. What is the expected value for the annual savings?

Reference no: EM13698885

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