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The table below lists the probabilistic values of a stochastic cash flow of a three-year project. What is the value of initial investment value Z
The table below lists the probabilistic values of a stochastic cash flow of a three-year project. What is the value of initial investment value Z that results in a 95% confidence (probability) that a 6% minimal attractive rate of return (MARR) will be achieved? EOY Mean Variance 0 Z 22,0002 + $27,500 8,0002 2 + 37,000 7,8002 3 + 48,300 9,2002
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