You are considering an investment project with two-year life. Due to the uncertainty in the market, three possible future outcomes at end of Years 1 & 2, and their probability of occurrence were determined in the table below. Outcome 1 has an occurrence probability equivalent to 25% (P(0.25)), outcome 2 with a probability of 45% (P(0.45)) and outcome 3 with a probability of 30% (P(0.3)). End of Outcome 1 Outcome 2 Outcome 3 Expected value P(F) Variance P(0.25) -8,000 3,000 6,000 year P(0.45) P(0.3) -8,000 -8,000 -8,000 1 7,000 15,000 13,000 21,240,000 2 10,000 9,900 a) Calculate the expected value at the end of year 1 and using an interest rate of 10%, compute the expected NPW value of the project. b) calculate the variance at year 0 and year 2 c) compute the variance of the Net Present Value distribution and compute the standard deviation of the project NPW distribution. d) determine the probability for the investment to have a positive NPW. d)

Q: W more than 5

A: For the two values to be equal, the sign '='is used. For two values to be definitely unequal, the…

Q: 3. %3D

A: Introduction: There are two types of fractions. One is a proper fraction and another is an improper…

Q: -7.4v+2.4(-7.1v+-10)+6.7

A: simplified value is -24.44 v - 17.3

Q: Find the area of the shaded region. The graph to the right depicts IQ Scores of adults, and those…

A:

Q: 2x Ax) = %3D 2 - 1

A:

Q: p=2.59c+1.72(8-c)

A:

Q: 3p - p

A: Here Given that, 3p-p

Q: L(P-5)0

A: Explanation of the answer is as follows

Q: 6³ S 3s² +1 =ds

A:

Q: 3) If segment PT 800 feet, find the length of segment PA and segment TA.

A:

Q: Using the sketch graphs of y = x' and x+ y=1, show that x' +x-1=0 has only one real root and state…

A: Sketch the graph of polynomial y=x3 and line x+y=1.                         From the graph it can…

Q: 7- + 4 = %3D 8.

A: Given,         738+4

Q: Q: 32

A: We have  to find the perimeter

Q: S P 45 V2 30 R Q

A:

Q: None

A:

Q: 4(P-9) = 92

A: Answer

Q: S V25 – 4x²

A: For the solution follow the next step.

Q: 5+499

A: We need to evauate 5+499

Q: A+12=13

A: Given,   A+12=13     We will solve it for the value of A

Q: n=5 II

A:

Q: 4a5b• V18a3b6

A: We have to find

Q: 7k = 91

A: We will find the value of k in the following step.

Q: 16+3•5

A: Given:  16+3*5

Q: D A P32 B C

A:

Q: S A+ AMQ for M.

A: NOTE: Refresh your page if you can't see any equations. .

Q: finf the

A:

Q: 4 8 22

A: Given Triangle

Q: 2+36=38

A: Given 2+ 36 = 38  Yes the given statement is true .

Q: с 4 B 12 A

A:

Q: N 11 9

A: Here given that N/9=11

Q: 8sin 75 = 4

A:

Q: 1) (-2) + 3

A: Solving this we have

Q: N+2=4

A: The value is:-