The engineering team has researched three potential outcomes…
The engineering team has researched three potential outcomes for an upcoming project. Optimistically, the project will provide a present worth of $590,000; however, it is most likely to be $140,000. In the worst case, the project present worth will be $-95,000. Using the PERT distribution, what is the mean value for present worth? The engineering team uses a MARR of 10% and a 10-year planning horizon.