Suppose that you are considering an investment project with a two-year life. If the annual cash flows are given in terms of three-point estimates and these cash flows are statistically independent of...

Suppose that you are considering an investment project with a two-year life. If the annual cash flows are given in terms of three-point estimates and these cash flows are statistically independent of each other, compute the mean and variance of the NPW distribution. Use a risk-free discount rate of 10%.

Extracted text: Period (n) Pessimistic Most Likely Optimistic -$10,000 -$8,000 --$7,000 1 $5,000 $12,000 $15,000 2 $4,000 $10,000 $13,000