Assume a project costs Sh 30,000 and yields the following uncertain cashflows:

Year Cashflow

1 12,000

2 14,000

3 10,000

4 6,000

Assume also that the certainty equivalent coefficients have been estimated as follows:

₀ = 1.00

₁ = 0.90

₂ = 0.70

₃ = 0.50

₄ = 0.30

The risk-free discount rate is given as 10%

Required

Compute the NPV of the project