The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 15% per year. Based on this information, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW20? Click the icon to view the tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. a. Calculate the E(PW), V(PW), and SD(PW) of the project. (Round to the nearest dollar.) E(PW)=$ V(PW) = SD(PW) = $ million ($)2 (Round to two decimal places.) (Round to the nearest dollar.) b. The probability that PW20 is (Round to two decimal places.)
The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 15% per year. Based on this information, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW20? Click the icon to view the tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. a. Calculate the E(PW), V(PW), and SD(PW) of the project. (Round to the nearest dollar.) E(PW)=$ V(PW) = SD(PW) = $ million ($)2 (Round to two decimal places.) (Round to the nearest dollar.) b. The probability that PW20 is (Round to two decimal places.)
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 1CMA: Foster Manufacturing is analyzing a capital investment project that is forecasted to produce the...
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![The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is
two years, and MARR = 15% per year. Based on this information,
a. What are the E(PW), V(PW), and SD(PW) of the project?
b. What is the probability that PW ≥ 0?
Click the icon to view the tree diagram.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year.
a. Calculate the E(PW), V(PW), and SD(PW) of the project.
(Round to the nearest dollar.)
E(PW) = $
V(PW) =
SD(PW) = $
million ($)2 (Round to two decimal places.)
b. The probability that PW 20 is
(Round to the nearest dollar.)
(Round to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F181bbc27-daf4-4df7-b545-70f978e8efba%2F59f70157-379c-4115-8fa6-b348d56a567c%2Fopa3e7n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is
two years, and MARR = 15% per year. Based on this information,
a. What are the E(PW), V(PW), and SD(PW) of the project?
b. What is the probability that PW ≥ 0?
Click the icon to view the tree diagram.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year.
a. Calculate the E(PW), V(PW), and SD(PW) of the project.
(Round to the nearest dollar.)
E(PW) = $
V(PW) =
SD(PW) = $
million ($)2 (Round to two decimal places.)
b. The probability that PW 20 is
(Round to the nearest dollar.)
(Round to two decimal places.)
![More Info
N
12345
Discrete Compounding; i = 15%
Single Payment
Compound
Amount
Factor
To Find F
Given P
F/P
1.1500
1.3225
1.5209
1.7490
2.0114
Present
Worth Factor
To Find P
Given F
P/F
0.8696
0.7561
0.6575
0.5718
0.4972
Print
Compound
Amount
Factor
To Find F
Given A
F/A
1.0000
2.1500
3.4725
4.9934
6.7424
Uniform Series
Present
Worth Factor
To Find P
Given A
PIA
0.8696
1.6257
2.2832
2.8550
3.3522
Done
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4651
0.2880
0.2003
0.1483
Capital
Recovery
Factor
To Find A
Given P
A/P
1.1500
0.6151
0.4380
0.3503
0.2983
0
- $27,000
0.3
0.5
0.2
Time Period
1
$7,000
$11,000
$17,500
0.1
0.1
0.8
0.1
0.6
0.3
0.2
0.4
0.4
$17,000
$19,600
$23,300
$20,600
$24,800
$28,900
$21,000
$26,900
$29,900
Ⓒ](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F181bbc27-daf4-4df7-b545-70f978e8efba%2F59f70157-379c-4115-8fa6-b348d56a567c%2Fxyp5i6l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:More Info
N
12345
Discrete Compounding; i = 15%
Single Payment
Compound
Amount
Factor
To Find F
Given P
F/P
1.1500
1.3225
1.5209
1.7490
2.0114
Present
Worth Factor
To Find P
Given F
P/F
0.8696
0.7561
0.6575
0.5718
0.4972
Print
Compound
Amount
Factor
To Find F
Given A
F/A
1.0000
2.1500
3.4725
4.9934
6.7424
Uniform Series
Present
Worth Factor
To Find P
Given A
PIA
0.8696
1.6257
2.2832
2.8550
3.3522
Done
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4651
0.2880
0.2003
0.1483
Capital
Recovery
Factor
To Find A
Given P
A/P
1.1500
0.6151
0.4380
0.3503
0.2983
0
- $27,000
0.3
0.5
0.2
Time Period
1
$7,000
$11,000
$17,500
0.1
0.1
0.8
0.1
0.6
0.3
0.2
0.4
0.4
$17,000
$19,600
$23,300
$20,600
$24,800
$28,900
$21,000
$26,900
$29,900
Ⓒ
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