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please answer question 8 8. (2 points) For the following annual cash-flow estimates, find the E(PW), V(PW), and SD(PW) of the project. Assume that the
please answer question 8
8. (2 points) For the following annual cash-flow estimates, find the E(PW), V(PW), and SD(PW) of the project. Assume that the annual net cash-flow amounts are normally distributed with the expected values and standard deviations as given and statistically independent and that the MARR = 12% per year. End of Year, k Expected Value of Net Cash Flow, F. SD of Net Cash Flow, Ft -$7,000 1 3,500 $600 2 3,000 500 3 3 2,800 400 A graphical portrayal of these normally distributed cash flows is shown in the following figure. k-3 Time 2.800 k = 2 3.000 Probability k0k1 3,500 --7,000 - 5,000 A 0 +5,000 Cash Flow, $ Step by Step Solution
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