State and Associated Probability This table summarizes estim

State and Associated Probability This table summarizes estimated annual benefits, annual costs, and end-of-life value for an asset under consideration. Determine the expected value for the End-of-life value $8,100.18 $5,821.00 $7,750.00 $6,720.00

Solution

Solution:

Expected value=the expected value equals the sum of all the possible outcomes multiplied by their probabilities.

=5000*0.2+7500*0.40+9000*.25+10000*.15

=$7,750.00

Option(3) from choices