A firm is considering a project costing K200, 000 with 3 years economic life and no salvage value. Depending on possible economic condition, the net cash flow and associated probabilities are given below. Considering a 12 percent discount rate, calculate the Expected NPV.

Year Economic condition Net cash flow (In thousands) Probability 1 Very good 100 0.3 Good 80 0.6 Fair 60 0.1 2 Very good 120 0.3 Good 100 0.5 Fair 80 0.2 3 Very good 150 0.4 Good 120 0.4 Fair 100 0.2