A mining investment is more likely to generate revenues of $500,000 per year for the next 10 years of service life. However, the investors think that there is a possibility that the revenues could be as high as $675,000 per year or as low$175,000 per year. The investors MARR is8% per year. Answer the following two questions:

1 Calculate the PW based on the optimistic estimate of the net annual revenues.

2. Calculate the PW based on the expected net annual revenues calculated using the three-point estimation technique.