Question: 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

Decision D6, which has three possible choices (X, Y, or Z), must

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 16% 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. High Low High D6 Low Z High Low Investment, Cash Flow, (Year Cash Flow, $1000 Cash Flow, Cash Flow, $1000 Year 3 3) (Year 4) $1000 (Year 5) (Year 6) Outcome Probability 3 4 5 6 High (X) $-190,000 $50 $50 $50 0.58 Low (X) $40 $30 $20 0.42 High (Y) $-54,000 $30 $40 $50 0.45 Low (Y) $30 $30 $30 0.55 High (Z) $-240,000 $190 $170 $150 0.7 Low (Z) $-30 $-30 $-30 0.3 The present worth of X is $ The present worth of Y is $ The present worth of Z is $ | Select decision branch Y

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