A project requires investment of 800 at time 0 and an additional investment of 500 at time 1.

Revenues are expected to be 700 at time 2, 800 at time 3, and 900 at time 4.

The standard deviations of investments are 30 at time 0 and 40 at time1.

The standard deviations of revenues are [70, 80, 90] for times [2, 3, 4], respectively.

You believe the investment amounts are perfectly positively correlated among themselves, and you believe the revenues are perfectly positively correlated among themselves, but that the investments are independent of the revenues.The MARR = 10%.

Question 1:Estimate the expected value of the Present Value of the project, and the Variance of the Present Value, under the assumption that all financial randam variables are independent.

Estimate the expected value of the Present Value of the project, and the Variance of the Present Value,

under the assumption that all financial random variables are perfectly positively correlated.

Describe a situation that might be more representative than the situations in Questions 1 and 2.

You don't need to compute any new results.Simply describe the main effects.