Marr state the expected value of the present worth

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Reference no: EM131936834

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

Reference no: EM131936834

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