Assume a project costs Sh 300,000 and yields the following uncertain cash flows:

Year Cash flow

1 120,000

2 140,000

3 100,000

4 60,000

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

0 = 1.00

1 = 0.80

2 = 0.60

3 = 0.70

4 = 0.40

The risk-free discount rate is given as 10%

Required

Compute the NPV of the project