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11. If higher voltage transmission lines are used, the initial capital cost will increase by $250,000, but transmission losses will be reduced throughout the 30-year life of the project. The optimistic, most likely, and pessimistic projections for annual savings are $25,000, $20,000, and $13,000. Al estimates are "real," i.e., inflation adjusted, and the real MARR is 6%. What is the NPV under the most optimistic projection of annual savings? Under the most likely projection of savings? Under the pessimistic assumption? a. Optimistic NPV Most Likely NPV Pessimistic NPV b. Use the beta probability distribution to calculate the expected value of NPV. That is, attach a probability of 2/3 to the most likely outcome and a probability of 1/6 to both the pessimistic and optimistic outcomes. Does the expected value of NPV equal the NPV for the most likely outcome? Why or why not? c