The tree diagram in figure below describes the uncertain cash flows for an engineering project....
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Finance
The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARRequals=18% 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?
Please answer all questions will rate highly if correct.
Time Period 0 1 2 $17,900 0.3 $5,000 0.2 $20,700 0.5 $22,900 0.2 $21,400 0.3 - $26,000 $13,500 0.5 0.4 $23,500 0.3 $28,900 0.3 $23,600 0.4 $18,500 0.5 $26,300 0.1 $30,400 Discrete Compounding; i = 18% Single Payment Compound Amount Uniform Series Compound Amount Factor Sinking Capital Recovery Present Present Fund Worth Factor Factor Worth Factor Factor Factor To Find F Given P To Find P Given F To Find F To Find A To Find A To Find P Given A P/A Given A Given F Given P F/A A/F F/P P/F A/P 0.8475 1.0000 1 1.1800 0.8475 1.0000 1.1800 2.1800 0.6387 2 1.3924 0.7182 1.5656 0.4587 3 1.6430 0.6086 3.5724 2.1743 0.2799 0.4599 1.9388 5.2154 2.6901 0.1917 4 0.5158 0.3717 0.1398 5 2.2878 0.4371 7.1542 3.1272 0.3198
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