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GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS ROUNDED TO THE NEAREST DOLLAR, for instance if you compute
GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS ROUNDED TO THE NEAREST DOLLAR, for instance if you compute $77,342.6478 then ENTER 77343 AS YOUR ANSWER. DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS. There is a little bit of tolerance built into accepting/rejecting your answer, but if you round in your intermediate calculations you may be too far off. Cash flows for a proposed project are given in the table below, given the three possible future outcomes. Calculate the Expected Present Worth of the project's cash flows. Assume 10% MARR. (Note: If the present worth turns out to be negative include the negative sign in front of your answer.) Probability 10% Probability 70% Probability 20% Year Cash Flow Cash Flow Cash Flow 0 -68,000 -68,000 -68,000 1 5,000 18,000 27,000 2 5,000 11,000 23,000 3 5,000 12,000 25,000 4 8,000 11,000 22,000
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