Thermtech Science has performed an economic analysis of proposed service in a new region of the country. The three-estimate approach to sensitivity analysis has been applied. The optimistic and pessimistic values each have an estimated 15% chance of occurring. Use the FW values shown to determine the expected FW.
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E(FW) = 0.15(200,000 – 25,000) + 0.7(40,000) = $54,250
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