A new machine will cost 25000 the machine is expected to


A new machine will cost $25,000. The machine is expected to last 4 years and has no salvage value. If the interest rate is 12%, determine the return and risk associated with the purchase.

Probability 0.3 0.4 0.3
Annual Savings $7000 $8500 $9500

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Econometrics: A new machine will cost 25000 the machine is expected to
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