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Decision D6, which has three possible choices (X, Y. Or Z). must be made in year 3 of a 6-year study period in order to
Decision D6, which has three possible choices (X, Y. Or Z). must be made in year 3 of a 6-year study period in order to maximize EPW). Using an MARR of 14% per year, the investment required in year 3, and the estimated cash flows for years 4 through 6. determine which decision should be made in year 3. High Low High Y D6 Low Z High Low Outcome Probability Investment. Cash Flow. (Year Cash Flow. $1000 Year 3 3) (Year 4) 3 4 High (X) $-180,000 $50 Low (X) $40 High (Y) $-51,000 $30 Low (Y) $30 High ) $-270.000 $190 Low (Z) $-30 Cash Flow, $1000 (Year 5) 5 $50 $30 $40 $30 $170 $-30 Cash Flow. $1000 (Year 6) 6 $50 $20 $50 $30 $150 $-30 0.56 0.44 0.45 0.55 0.7 0.3 The present worth of X is $ -36.66 The present worth of Y is $ The present worth of Zis $ Select decision branch (Click to select)
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