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10. (2 points) For the following annual cash-flow estimates, find the E(PW), V(PW), and SD(PW) of the project. Assume that the annual net cash-flow amounts

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10. (2 points) For the following annual cash-flow estimates, find the E(PW), V(PW), and SD(PW) of the project. Assume that the annual net cash-flow amounts are normally distributed with the expected values and standard deviations as given and statistically independent and that the MARR = 10% per year. End of Year, Expected Value of Net Cash Flow, F SD of Net Cash Flow, FX -$7,000 0 1 3.500 S600 3,000 500 N 3 2,800 400 A graphical portrayal of these normally distributed cash flows is shown in the following figure. A graphical portrayal of these normally distributed cash flows is shown in the following figure. k=3 X Time 2.800 k = 2 3,000 Probability 3,500 k=0 /k = 1 -7,000 -5,000 +5,000 0 Cash Flow, $

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