Problem
Suppose that, for an engineering project, the optimistic, most likely, and pessimistic estimates are as shown in the accompanying table. Develop a spreadsheet to determine the AW for each of the three estimate conditions. It is thought that the most critical elements are useful life and net annual cash flow. Include in your spreadsheet a table showing the AW for all combinations of the estimates for these two factors, assuming that all other factors remain at their most likely values.
Optimistic Most Likely Pessimistic
Capital investment $90,000 $100,000 $120,000
Useful life 12 years 10 years 6 years
Market value $30,000 $20,000 $0
Net annual $35,000 $30,000 $20,000
cash flow MARR (per year) 11% 11% 11%
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.