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3. suppose the lifetime of a particular machine is uniformly distributed...

# Question: suppose the lifetime of a particular machine is uniformly distributed...

###### Question details

Suppose the lifetime of a particular machine is uniformly distributed on the set [0,24].
a) What is the expected lifetime of one of these machines?
b) If one of these machines produce, approximately, 32000 profit per year, then what is the total expected profit from one of these machines (assume no interest)?
c) If we assume, approximately, an effective annual interest rate of 0.03, then what is the present value of the expected profit from one of these machines?