Two investment options are to be compared. The data below have been estimated by a committee of experts, and all the cash flows are assumed to be independent. Life is not a variable. With MARR = 15% per year, determine the mean and standard deviation of the incremental PW [i.e., ˆ†(B-A)].

Alternative A Alternative B Std Std. Expected Deviation Expected Deviation End of Cash of Cash Cash of Cash Year FlowFlowFlowFlow 0$10,000 $0 15,000 $700 $5,000 $500 2 S5,000 $500 5,000 $500 $5,000 $500 6,500 $600$5,000 $500 $2,500 $400 2 3,000 $550