The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% 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 12% per year.a. Calculate the E(PW), V(PW), and SD(PW) of the project.E(PW) = $ (Round to the nearest dollar.)More Info0-$29,0000.20.60.2Time Period1$5,500$11,000$17,5000.10.10.80.10.70.20.20.30.52$17,200$20,200$24,800$20,100$24,600$29.300$21,900$28,000$31,100CQ- XMore InfoN12345Discrete Compounding; i = 12%CompoundAmountFactorTo Find FGiven AFIA1.00002.12003.37444.77936.3528Single PaymentCompoundAmountFactorTo Find FGiven PF/P1.12001.25441.40491.57351.7623PresentWorth FactorTo Find PGiven FP/F0.89290.79720.71180.63550.5674PrintUniform SeriesPresentWorth FactorTo Find PGiven AP/A0.89291.69012.40183.03733.6048DoneSinkingFundFactorTo Find AGiven FA/F1.00000.47170.29630.20920.1574CapitalRecoveryFactorTo Find AGiven PA/P1.12000.59170.41630.32920.2774- X

Present worth refers to the discounted value of future cash flow .Expected present worth is weight…

The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% per year. Based on this information, . What are the E(PW), V(PW), and SD(PW) of the project? . 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 12% per year. a. Calculate the E(PW), V(PW), and SD(PW) of the project. E(PW) = $ (Round to the nearest dollar.) More Info - X More Info

The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% per year. Based on this information, . What are the E(PW), V(PW), and SD(PW) of the project? . 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 12% per year. a. Calculate the E(PW), V(PW), and SD(PW) of the project. E(PW) = $ (Round to the nearest dollar.) More Info - X More Info

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% 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 12% per year.
a. Calculate the E(PW), V(PW), and SD(PW) of the project.
E(PW) = $ (Round to the nearest dollar.)
More Info
0
-$29,000
0.2
0.6
0.2
Time Period
1
$5,500
$11,000
$17,500
0.1
0.1
0.8
0.1
0.7
0.2
0.2
0.3
0.5
2
$17,200
$20,200
$24,800
$20,100
$24,600
$29.300
$21,900
$28,000
$31,100
C
Q
- X
More Info
N
1
2
3
4
5
Discrete Compounding; i = 12%
Compound
Amount
Factor
To Find F
Given A
FIA
1.0000
2.1200
3.3744
4.7793
6.3528
Single Payment
Compound
Amount
Factor
To Find F
Given P
F/P
1.1200
1.2544
1.4049
1.5735
1.7623
Present
Worth Factor
To Find P
Given F
P/F
0.8929
0.7972
0.7118
0.6355
0.5674
Print
Uniform Series
Present
Worth Factor
To Find P
Given A
P/A
0.8929
1.6901
2.4018
3.0373
3.6048
Done
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4717
0.2963
0.2092
0.1574
Capital
Recovery
Factor
To Find A
Given P
A/P
1.1200
0.5917
0.4163
0.3292
0.2774
- X

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