Don Garlits is a landscaper. He is considering the purchase of a new commercial lawn mower, either the Atlas or the Zippy. Information about both is listed below and each has a chance to be bought at a high, medium or low price:

	Atlas		Zippy
Initial Cost	$25,000		$20,000
	Probability	Revenue	Probability	Revenue
Net Revenue given in PW	0.30	$40,000	0.15	$45,000
	0.40	$30,000	0.40	$22,000
	0.30	$15,000	0.45	$18,000

Assuming both options are statistically independent of each other,

a. Calculatetheexpectedpresentvalueforeachoption.[5points]

b. Calculate the variance in the NPV for each option. [5 points] c. Whichlawnmowershouldbechosen?Why?[1+1points]