Meedas Enterprises has a proposal costing £800. Using a 10 per cent cost of capital, compute the expected NPV, standard deviation and coefficient of variation, assuming independent interperiod cash flows.

Probability Year 1 net cash flow (£) Year 2 net cash flow (£)

0.2 400 300 0.3 500 400 0.3 600 500 0.2 700 600