please help me EconomicsDecision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year studyperiod in order to maximize E(PW). Using an MARR of 18% per year, the investment required in year 3,and the estimated cash flows for years 4 through 6, determine which decision should be made in year3.Cash Flow,(Year 3)3$-260,000Cash Flow, $1000 Cash Flow, $1000 Cash Flow, $1000 Outcome(Year 4)4$50$40$30$30$190$-30Investment,Year 3(Year 6)(Year 5)ProbabilityHigh (X)Low (X)High (Y)Low (Y)High (Z)Low (Z)The present worth of X is $The present worth of Y is $The present worth of Z is $ .$50$30$40$30$170$-30$50$20$50$30$150$-300.720.280.450.550.70.3$-52,000$-250,000

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Decision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year study period in order to maximize E(PW). Using an MARR of 18% per year, the investment required in year 3, and the estimated cash flows for years 4 through 6, determine which decision should be made in year 3. Cash Flow, $1000 Cash Flow, $1000 Cash Flow, $1000 Outcome (Year 4) 4 $50 $40 $30 $30 $190 $-30 Cash Flow, (Year 3) 3 $-260,000 Investment, Year 3 Probability (Year 5) (Year 6) High (X) Low (X) High (Y) Low (Y) High (Z) Low (Z) The present worth of X is $ The present worth of Y is $ . The present worth of Z is $ . $50 $30 $40 $30 $170 $-30 $50 $20 $50 $30 $150 $-30 0.72 0.28 0.45 0.55 0.7 0.3 $-52,000 $-250,000

Decision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year study period in order to maximize E(PW). Using an MARR of 18% per year, the investment required in year 3, and the estimated cash flows for years 4 through 6, determine which decision should be made in year 3. Cash Flow, $1000 Cash Flow, $1000 Cash Flow, $1000 Outcome (Year 4) 4 $50 $40 $30 $30 $190 $-30 Cash Flow, (Year 3) 3 $-260,000 Investment, Year 3 Probability (Year 5) (Year 6) High (X) Low (X) High (Y) Low (Y) High (Z) Low (Z) The present worth of X is $ The present worth of Y is $ . The present worth of Z is $ . $50 $30 $40 $30 $170 $-30 $50 $20 $50 $30 $150 $-30 0.72 0.28 0.45 0.55 0.7 0.3 $-52,000 $-250,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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