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A networking service company is examining two mutually exclusive projects. The probability distributions of annual cash inflows are presented below: Year 1 Year 2 Initial

A networking service company is examining two mutually exclusive projects. The probability distributions of annual cash inflows are presented below:

Year 1

Year 2

Initial Probability

Cash Flow

Initial Probability

Cash Flow

0.30

800

0.50

900

0.50

700

0.40

500

0.25

800

0.50

700

0.25

600

0.30

200

0.60

200

0.40

200

If the risk-free rate is 4% and the company's required rate of return is 10%, calculate the expected NPV for the project. What is the probability that Treasury securities would be a better investment?

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