3. (a) A Wheelchair Company has a substantial investment in tubular steel bending equipment. A new piece of equipment costs $1,000 and has a life of 2 years. Estimated cash flows, shown in Figure-1, depend on economic conditions classified as receding 0.4 but 0.3, stable 0.5, or expanding 0.2. A probability is estimated that each of the economic conditions will prevail during the 2-year period. Apply expected value and PW analysis to determine if the equipment should be purchased. Calculate associated standard deviation SD (PW). MARR =12%. Comment on the project acceptability. Figure-1 (b) The total design and construction cost for a digester to handle a flow rate of 0.5 million gallons per day (MGD) was $1.7 million in 2010. Estimate the cost today for a flow rate of 2.0MGD. The capacity factor for the MGD range of 0.2 to 40 is 0.14. The cost index in 2010 of 131 has been updated to 225 for this year. 3. (a) A Wheelchair Company has a substantial investment in tubular steel bending equipment. A new piece of equipment costs $1,000 and has a life of 2 years. Estimated cash flows, shown in Figure-1, depend on economic conditions classified as receding 0.4 but 0.3, stable 0.5, or expanding 0.2. A probability is estimated that each of the economic conditions will prevail during the 2-year period. Apply expected value and PW analysis to determine if the equipment should be purchased. Calculate associated standard deviation SD (PW). MARR =12%. Comment on the project acceptability. Figure-1 (b) The total design and construction cost for a digester to handle a flow rate of 0.5 million gallons per day (MGD) was $1.7 million in 2010. Estimate the cost today for a flow rate of 2.0MGD. The capacity factor for the MGD range of 0.2 to 40 is 0.14. The cost index in 2010 of 131 has been updated to 225 for this year