If the interest rate is 9% per year, what decision would you make based on the decision tree diagram in the figure below? Click the icon to view the decision tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. 5 Calculate the PW value for the New Product. PW New Product (9%) = $ thousand (Round to one decimal place.) (0.3) $225,000 profit per year for seven years, starting at EOY 3 - $1,000,000 at EOY 2 Introduce New Product (0.7) Do Nothing $295,000 profit per year for seven years, starting at EOY 3 - - - - - $0 profit/ yr. for 9 years Year o Capital Recovery Factor To Find A Given P F/P PIF AIP o o voso A WN-Z Discrete Compounding; i = 9% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIA PIA A/F 1.0900 0.9174 1.0000 0.9174 1.0000 1.1881 0.8417 2.0900 1.7591 0.4785 1.2950 0.7722 3.2781 2.5313 0.3051 1.4116 0.7084 4.5731 3.2397 0.2187 1.5386 0.6499 5.9847 3.8897 0.1671 1.6771 0.5963 7.5233 4.4859 0.1329 1.8280 0.5470 9.2004 5.0330 0.1087 1.9926 0.5019 11.0285 5.5348 0.0907 2.1719 0.4604 13.0210 5.9952 0.0768 2.3674 0.4224 15.1929 6.4177 0.0658 1.0900 0.5685 0.3951 0.3087 0.2571 0.2229 0.1987 0.1807 0.1668 0.1558 If the interest rate is 9% per year, what decision would you make based on the decision tree diagram in the figure below? Click the icon to view the decision tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. 5 Calculate the PW value for the New Product. PW New Product (9%) = $ thousand (Round to one decimal place.) (0.3) $225,000 profit per year for seven years, starting at EOY 3 - $1,000,000 at EOY 2 Introduce New Product (0.7) Do Nothing $295,000 profit per year for seven years, starting at EOY 3 - - - - - $0 profit/ yr. for 9 years Year o Capital Recovery Factor To Find A Given P F/P PIF AIP o o voso A WN-Z Discrete Compounding; i = 9% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIA PIA A/F 1.0900 0.9174 1.0000 0.9174 1.0000 1.1881 0.8417 2.0900 1.7591 0.4785 1.2950 0.7722 3.2781 2.5313 0.3051 1.4116 0.7084 4.5731 3.2397 0.2187 1.5386 0.6499 5.9847 3.8897 0.1671 1.6771 0.5963 7.5233 4.4859 0.1329 1.8280 0.5470 9.2004 5.0330 0.1087 1.9926 0.5019 11.0285 5.5348 0.0907 2.1719 0.4604 13.0210 5.9952 0.0768 2.3674 0.4224 15.1929 6.4177 0.0658 1.0900 0.5685 0.3951 0.3087 0.2571 0.2229 0.1987 0.1807 0.1668 0.1558