A recent sensitivity analysis of a public worksproject

Chapter 18, Problem 18.49

(choose chapter or problem)

A recent sensitivity analysis of a public worksproject indicates that the expected present worth is$83,000. If there is a 20% chance that the PW willbe the pessimistic one of $45,000 and 50% chancethat it will be the most likely one of $72,000, theoptimistic PW is closest to: (a) $89,520 (b) $118,380 (c) $126,670 (d) $138,540

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