1. General Electric evaluates a new project with an initial investment of $12,000,000, expected cash flows: Year 1 $2,500,000, Year 2 $3,000,000, Year 3 $4,000,000, discount rate 10%.
   • Requirements:
     • Calculate the net present value (NPV) of the project.
     • Conduct a sensitivity analysis on cash flows and the discount rate.
     • Determine the probability distribution of NPV.
     • Discuss the risk-adjusted discount rate and its impact on investment decisions.