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dont use hand-writing 10. A firm is considering undertaking a new project. The startup cost will be $9000, The project is estimated to have a

dont use hand-writing
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10. A firm is considering undertaking a new project. The startup cost will be $9000, The project is estimated to have a life of six years. The following probability distribution is used to find the value of the expected cash flow for each of the six years. The cost of capital is 13%. Probability 0.2 0.5 0.3 Cash Flow $3000 5000 6000 3) Find the expected cash flow. Note that this expected cash flow will be the same cash flow for each of the six years. (2 points) b) Find the NPV. The cash inflows occur at the end of each of the six years with the first cash flow occurring at the end of the first year. (4 points)

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