Determine the joint probability distribution for savings

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Reference no: EM132210956

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 of 0.6 and 3 years with probability of 0.4.

Annual Benefit	Probability
$15,000	0.25
$20,000	0.45
$25,000	0.3

Determine the joint probability distribution for savings per year and useful life.

Determine the expected NPW if an investment of $50,000 is required. No salvage is expected. Use a MARR of 10%.

Reference no: EM132210956

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