1. Mali Business is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next: Possible Market ReactionSales in UnitsProbabilities Low response 20 0.10 Moderate response 40 0.30 High response 55 0.40 Very high response ?0 0.20 a. Use the risk management tools and estimate the expected value of unit sales for the new product?(5 marks) b. Using the risk management techniques nd the standard deviation of unit sales?(5 marks )Note: Do not round intermediate calculations. Round your answer to 2 decimal places. 2. Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H represents an investment in a hydraulic lift. Keller wishes to use a net present value prole in comparing the projects. Evaluate the best project using the investment and cash ow patterns given below. Project E [$52,000 InvestmentjProject H {MLOOO Investment} Year Cash FlowI Year Cash Flow 1 $10,000 1 $ 27,000 2 14,000 2 19,000 3 24,000 3 15,000 4 31,000 a. Evaluate the net present value of the projects based on a zero percent discount rate. (4 marks) b. Evaluate the net present value of the projects based on a discount rate of 9 percent. (4 marks) Note: Do not round intermediate calculations and round your answers to 2 decimal places. c. If the projects are not mutually exclusive, evaluate which project(s) would you accept if the discount rate is 9 percent? (2 marks)