Question

A company is considering a capital investment for a new manufacturing machine. The estimates for optimistic, most likely, and pessimistic outcomes are given in the following table. If the critical factors in the company's decision are annual revenue and annual expenses, and the company can use the most likely values for all other factors, fill in the n the missing values, which are each highlighted by a border. The company's MARR = 8%.(show work)

	Optimistic	Most likely	Pessimistic
Capital Investment	$120,000	$150,000	$180,000
Useful life (years)	18	10	8
Market Value	$20,000	$10,000	$0
Annual Revenue	$110,000	$70,000	$50,000
Annual Expenses	$20,000	$43,000	$57,000

                                                

                                    Annual Expenses

Annual Revenue	O	ML	P
O	$67,646	$	$30,646
ML	$	$4,646	$(9,354)
P	$7,646	$(15,354)	$

Answer 1