Decision D6, which has three possible choices (X. Y. or Z). must be made in year 3 of a 6-year study perlod In order to maximize [ PW). 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 O Low High O Low High O Low Investment, Cash Flow, (Year Cash Flow, $1000 Cash Flow, Cash Flow, $1000 Year 3 Outcome 3) [Year 4) $1000 (Year 5) (Year 6) Probability 3 4 5 6 High (X) $-200.000 $50 $50 $50 0.6 Low (X) $40 $30 $20 0.4 High (Y) $-62,000 $30 $40 $50 0.45 Low (Y) $30 $30 $30 0.55 High (Z) $-240,000 $190 $170 $150 0.7 Low (Z) 3-30 $-30 $-30 0.3 The present worth of X Is $ - 137101 The present worth of Y Is $ The present worth of Z Is $ Select decision branch 2 V2 Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to determine the sensitivity of the economic decision to MARR values of 4%, 6%, and 8% per year. 10 System Air-Conditioning System 1 Air-Conditioning System 2 points First cost, $ -8,000 -12,000 AOC, $ per year -750 -125 Salvage value, $ -100 -300 eBook New compressor and motor cost at midlife, $ -1,650 -2,700 Hint Life, years 8 12 The annual worth of alr-conditioning system 1 when the MARR Is 4% Is $ Print The annual worth of air-conditioning system 2 when the MARR Is 4% Is $ References The annual worth of air-conditioning system 1 when the MARR Is 6% Is $ The annual worth of air-conditioning system 2 when the MARR Is 6% Is $ The annual worth of air-conditioning system 1 when the MARR Is 8% Is $ The annual worth of air-conditioning system 2 when the MARR Is 8% Is $ When the MARR Is 4% 2 is selected. When the MARR Is 6% 2 vis selected. When the MARR Is 8% 2 v Is selected.An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of equipment for $60,000 Initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 Is a rental option that will cost $15,000 per year. In addition, an extra $18.5 per hour labor cost will be Incurred for operating the rented equipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed for 90 days per year? The MARR Is 11% per year. The annual worth of plan 1 lease optimistic Is $ - 19834.2 The annual worth of plan 1 most likely is $ The annual worth of plan 1 pessimistic Is $ The annual worth of plan 2 rental Is $ Plan 1 lease optimistic is better than rental of plan 2. Plan 1 most likely is better v than rental of plan 2. Plan 1 lease pessimistic is better than rental of plan 2.A new antitheft system Incorporating MEMS technology is being separately evaluated economically by three engineers at Dragon Technologies. The first cost of the equipment will be $85,000, and the life is estimated at 6 years with a salvage value of $9000. The engineers made different estimates of the net savings that the equipment might generate. Jacob made an estimate of $12,000 per year. Susan states that this Is too low and estimates $13,000, while Tyler estimates $23,000 per year before tax. If the MARR Is 8% per year, use PW to determine if these different estimates will change the decision to purchase the equipment. The present worth of the pessimistic estimate Is $ - 23853.! The present worth of the most likely estimate Is $ The present worth of the optimistic estimate is $ The equipment purchase by the pessimistic estimate is not justified v The equipment purchase by the most likely estimate is not justified v The equipment purchase by the optimistic estimate is justified vAn engineer has been offered an Investment opportunity that will require an Immediate cash outlay of $40,000 for a cash Inflow of $3500 for each year of Investment. However, she must state now the number of years she plans to retain the Investment. Additionally, If the Investment is retained for 6 years, a lump-sum amount of $34,000 will be returned to her; after 10 years, the lump-sum return Is anticipated to be $50,500, and after 15 years, It is estimated to be $57,000. Money is currently worth 7% per year. Determine the present worth values for 6 years, 10 years, and 15 years, and decide If the decision is sensitive to the retention perlod? The present worth when the Investment is retained for 6 years Is $ The present worth when the Investment is retained for 10 years Is $ The present worth when the Investment is retained for 15 years Is $ The present worth is sensitive v to the Investment perlod.How much must you deposit each year into your retirement account starting now and continuing through year 11 if you want to be able to withdraw $75,000 per year forever, beginning 33 years from now? Assume the account earns Interest at 10% per year. The amount to be deposited is determined to be $ 4972Airodvne Wind, Inc.r has wind tunnels that can operate vertically' or horizontally for evaluating the effects of air ow on a component's PCB response and reliability. The company.r expects to build a new tunnel that will be outfitted with multiple sensor ports. For the estimates below, calculate the equivalent annual cost of the project First Cost Ell270,000 Replacement Cost, Year 2 $-3I"0,0 00 ADC per Year $940,000 Salvage Value $295,000 Life, Years Interest Rate 12% The equivalent annual cost ofthe project is $ 23.45431