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27 May, 05:16

1) The college of Staten island company must decide between two mutually exclusive industrial printers. The cost of each printer is $6,750, and each has an expected life of 3 years. Annual projected cash flows for each printer are as follows:

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  1. 27 May, 05:41
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    Answer and Explanation:

    1

    Expected cash flow for the project

    Project A

    sum (Probability*CF)

    (6000*20%) + (6750*60%) + (7500*20%)

    = 6750

    project B

    (20%*0) + (60%*6750) + (20%*18000)

    = 7650
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