Your company is evaluating whether to purchase an equipment…

Your company is evaluating whether to purchase an equipment or not. The initial cost is $[c]. According to your estimate, the equipment can have annual savings of $[a1] with [p1] possibility or have annual savings of $[a2]. The useful life of the equipment is 10 years, and with equal chance to have a salvage value of $[s1] or $[s2]. Given MARR = 6%, what is the expected NPV of the equipment? (10 points)