4. 8.62 Carl, a colleague in Europe working for the same company that you do, estimated the most likely cash flows after taxes (CFAT) for a project he is working on. Table Summary: Table divided into two columns shows the estimated amount of money to be invested in a project. The column headers are marked from left to right as: year and CFAT, in dollars. Year CFAT, $ 0 −35,000 1–10 5,500 The PW value at the current MARR of 8% per year is PW = −35,000 + 5500(P/A,8%,10) = $1905 Because of the changing economic scene, Carl believes the MARR will vary over a relatively narrow range, as will the CFAT. He is willing to accept the other estimates as certain. Use the following probability distribution assumptions for MARR and CFAT to perform a simulation. Take a sample of 30 or more simulation trials and use PW analysis to determine if the project is economically justified using decision making under certainty. Under risk.Page 273 MARR Discrete uniform distribution over the range 7% to 10%

CFAT Continuous uniform distribution over the range $4000 to $7000 for each year 1 to 10