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Help engineering economics A company is considering two investment projects whose present values are described as follows: Project 1: there are three possible NPW outcomes:

Help engineering economics

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A company is considering two investment projects whose present values are described as follows: Project 1: there are three possible NPW outcomes: $2,000, $4,000, and $8000 with associated probabilities: 0.4, 0.35, 0.25 respectively. Project 2: NPW('IO%) = 10 X + 8 XY+ 3 X2, where X, Y, and Z are statistically independent discrete random variables with the following distributions: Variable X Variable Y ' Variable 2 Event Probability Event Probability 'Event Probability $20 0.7 $11 0.25 . . EMUW075 [a] Compute the mean and variance of the NPW for project 1 [b] Plot the distribution of the NPW for project 1. X-axis is NPW value and Y-axis is probability. [c] If all NPW values from Project 1 are independent from NPW values from Project 2. Find the probability that Project 1 is better than Project 2

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