A new snow-making machine utilizes technology that permits snow to be produced in ambient temperature of 70°F or below. The estimated cash flows for the ski resort contemplating this investment are...

A new snow-making machine utilizes technology that permits snow to be produced in ambient temperature of 70°F or below. The estimated cash flows for the ski resort contemplating this investment are uncertain as shown below:

The machine is expected to have a useful life of 12 years, and the MARR of the ski resort is 8% per year. Is it worth investing in this resort? (Use PW method)

Extracted text: Amount ($) Probability 1.00 0.60 Capital investment 120,000 140,000 135,000 60,000 Annual revenues 0.40 0.60 Annual expenses 50,000 40,000 35,000 0.40 Salvage value 0.50 0.50