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Given the following details on investing on an automation system,
MARR= 10% per year,
useful life= 5 years,
Salvage value is uniformly distributed, i.e. SV follows U(15000, 25000)
& note that for any U(a, b), variance= [(b-a)^2]/12.
How to find Var(AW(SV)), i.e. find variance of annual worth of salvage value?
I think very long already, anybody has advice?
MARR= 10% per year,
useful life= 5 years,
Salvage value is uniformly distributed, i.e. SV follows U(15000, 25000)
& note that for any U(a, b), variance= [(b-a)^2]/12.
How to find Var(AW(SV)), i.e. find variance of annual worth of salvage value?
I think very long already, anybody has advice?
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