A mining investment is more likely to generate revenues of $500,000 per year for the...
80.2K
Verified Solution
Link Copied!
Question
Accounting
A mining investment is more likely to generate revenues of $500,000 per year for the next 10 years of service life. However, the investors think that there is a possibility that the revenues could be as high as $675,000 per year or as low$175,000 per year. The investors MARR is8% per year. Answer the following two questions:
1 Calculate the PW based on the optimistic estimate of the net annual revenues.
2. Calculate the PW based on the expected net annual revenues calculated using the three-point estimation technique.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
