The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period istwo 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 InfoN12345Discrete Compounding; i = 15%Single PaymentCompoundAmountFactorTo Find FGiven PF/P1.15001.32251.52091.74902.0114PresentWorth FactorTo Find PGiven FP/F0.86960.75610.65750.57180.4972PrintCompoundAmountFactorTo Find FGiven AF/A1.00002.15003.47254.99346.7424Uniform SeriesPresentWorth FactorTo Find PGiven APIA0.86961.62572.28322.85503.3522DoneSinkingFundFactorTo Find AGiven FA/F1.00000.46510.28800.20030.1483CapitalRecoveryFactorTo Find AGiven PA/P1.15000.61510.43800.35030.29830- $27,0000.30.50.2Time Period1$7,000$11,000$17,5000.10.10.80.10.60.30.20.40.4$17,000$19,600$23,300$20,600$24,800$28,900$21,000$26,900$29,900Ⓒ

Answer) The tree diagram shows a starting node (A) showing a value of -$27,000 and gives rise to…

Answered: The tree diagram in figure below…

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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