TABLE 12-1 Solution for Annual Revenue (Example 12-1)

TABLE 12-1 Solution for Annual Revenue (Example 12-1)

TABLE 12-2 Solution for AW (Example 12-1)

TABLE 12-3 Expected Equivalent Annual Cost (Example 12-2)

TABLE 12-4 Expected Equivalent Annual Cost (Example 12-3)

TABLE 12-5 Calculation of E(PW) and E[(PW)2] (Example 12-4)

Figure 12-1 Spreadsheet Solution, Example 12-4

Figure 12-2 Probability Tree Diagram for Example 12-5

TABLE 12-6 Calculation of E(PW) and E[(PW)2] (Example 12-5)

Figure 12-3Probabilistic Cash Flows over Time (Example 12-6)

TABLE 12-7 Calculation of E(Fk) and V(Fk) (Example 12-8)

TABLE 12-8 Probability Distribution for Useful Life

TABLE 12-9 Assignment of Random Numbers

TABLE 12-10 Random Normal Deviates (RNDs)

Figure 12-4 Normally Distributed Annual Cash Flow

TABLE 12-11 Example of the Use of RNDs

TABLE 12-12 Monte Carlo Simulation of PW Involving Four Independent Factors (Example 12-9)

Figure 12-5 Monte Carlo Simulation Using a Spreadsheet, Example 12-9

Figure 12-6 Plot of Cumulative Average PW to Determine whether Enough Simulation Trials Have Been Run

Figure 12-7 Histogram Showing Distribution of PW for 1,000 Simulation Trials

TABLE 12-13 Simulation Results for Three Mutually Exclusive Alternatives

Figure 12-8 Graphical Summary of Computer Simulation Results

Figure 12-9 Deterministic Replacement Example

TABLE 12-14 Monetary Outcomes and Decisions at Each Point — Deterministic Replacement Example of Figure 12-9a

TABLE 12-15 Decision at Each Point with Interest = 25% per Year for Deterministic Replacement Example of Figure 12-9

Figure 12-10 Single-Stage Decision Tree (Example 12-10)

Figure 12-11 Hytech Industries Example

TABLE 12-16 Decision Tree Endpoint Evaluation

TABLE P12-7 Three Generator Designs for Problem 12-7

Figure P12-12 Probability Tree Diagram for Problem 12-12

TABLE P12-17 Estimates for Problem 12-17

Figure P12-22 Simulation Results for Problem 12-22

Figure P12-23 Decision Tree Diagram for Problem 12-23

Figure P12-25 Decision Tree Diagram for Problem 12-25