A Compony studying to invest in project in Risky Future with the following cash flow distribution to:

Year 0	Year 1		Year 2		Year 3
(100)	CF	Probability	CF	Probability	CF	Probability
	58	0.2	60	0.6	56	0.4
	46	0.5	47	0.4	42	0.3
	32	0.3			34	0.3
E (CF) Expected Cash Flow	???		???		???

• Cost of Capital (K) = 10%
• Risk (Covariance ) = 0.7
• Probability (NPV > 0) = 90%

Calculate the Variances of each year CFs then the estimated NPV under risky future then the coefficient covariance to decide if we must ACCEPT or REJECT the project.