Question: Problem 18.035: Calculate the expected PW for options X, Y and Z Decision D6, which has three possible choices (X, Y, or Z), must be

Problem 18.035: Calculate the expected PW for

Problem 18.035: Calculate the expected PW for options X, Y and Z 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 APW). Using an MARR of 17% 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 Y D6 Low Z High Low Outcome Probability Investment, Cash Flow, (Year Cash Flow, $1000 Year 3 3) (Year 4) 3 4 High (X) $-160,000 $50 Low (X) $40 High (Y) $-58,000 $30 Low (Y) $30 High (Z) $-200,000 $190 Low (Z) $-30 Cash Flow, $1000 (Year 5) 5 $50 $30 $40 $30 $170 $-30 Cash Flow, $1000 (Year 6) 6 $50 $20 $50 $30 $150 $-30 0.52 0.48 0.45 0.55 0.7 03 The present worth of X is $ The present worth of Y is $ 100 The present worth of Z is $

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