The tree diagram in Figure P12-12 describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 15% per year. Based on this information,

a. What are the E(PW), V(PW), and SD(PW) of the project?
b. What is the probability that PW > 0?

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Time Period $17,500 0.1 0.2 0.7 56.000 19.000 23,000 0.2 S20,000 0.2 0.5 0.3 $29.000 12.000 0.45 24.600 28,000 11.2 22.400 0.3 0.4 0,3 19,000 27 500 31,000