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A company is considering an investment costing $10,000. The investment is such that the size of the inflow will be correlated with the state of

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A company is considering an investment costing $10,000. The investment is such that the size of the inflow will be correlated with the state of the economy. Economists can reliably estimate the following probability of the next 5 years. Company management can also reliably predict the inflows associated with each state of the economy, as shown in the table below. Assume the cost of capital of 11% and a risk premium of 9%, compute the risk-adjusted NPV

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