8.1 A new venture can be started at an investment cost of $1,200. The venture would generate a yearly expected real free cash flow of either $200 with probability p = 0.5 or $100, with probability 1 − p = 0.5 in the first year. The cash flows from that year on would remain at the level attained in the first year in perpetuity. Furthermore, assume that cash flows are uncorrelated with the market (they have β = 0). The real riskless rate is 10%. What is the NPV of this venture if it is started right away?