1-Calculate the expected value of NPV if the risk-free rate equal to 8%.

2-If cash flows are considered independent. Calculate the variance and standard deviation of the NPV.

3-What is the probability that the NPV of the project is less than or equal to zero?

4-If cash flows are considered totally dependent. Calculate the variance and standard deviation of the NPV.

5-What is the probability that the profitability index is greater than 2?

Question 5: Suppose we have an investment project with initial expenditure equal to 10,000 SAR and the distribution of cash flows are as follows: Period 1 Period 2 CF 3000 4000 5000 5000 6000 7000 8000 4000 7000 .30 6000 Period 1 Period 1 3000 5000 6000 8000 7000 Total Period 2 Period 1 4000 5000 7000 4000 6000 Total Question 5: Suppose we have an investment project with initial expenditure equal to 10,000 SAR and the distribution of cash flows are as follows: Period 1 Period 2 CF 3000 4000 5000 5000 6000 7000 8000 4000 7000 .30 6000 Period 1 Period 1 3000 5000 6000 8000 7000 Total Period 2 Period 1 4000 5000 7000 4000 6000 Total