Hurghada Gas ple has received *** survey reports of two gas fields. The company has a maximum of 80 million available for investment next year. The two projects are mutually exclusive. of year 1 . This will pay for pipe laying and other facilities necessary to bring the gas to the terminal. In years 2 and 3 the net cash inflows or outflows to the project will be dependent on national and international economic circumstances as well as extraction circumstances at the time. There are three possible outcomes for year 2, states Hi, Med and Lo. In year 3 there will be three pairs of possible outcomes and each *** pair will be dependent upon each of the earlier year 2 outcomes. So in year 3 , if state Hi occurred in year 2 then either states A or B will occur in year 3 . The table below sets out the information concerning flows and the likelihood of their occurrence. Interpreting the table, state Hi has a 0.45 chance of an inflow of 100 million in year 2 , while state A, with an inflow of 100 million, has a 0.8 chance in year 3 only if state Hi has already occurred in year 2. Project Y has an ENPV of E30 million with a standand deviation of 859.1 miltion from an ostiay of 870 million. The company has an existing portfolio of investments which are valued as havine an ENPV of t1770 millioes with a standard deviation of 2532 million. The asset cost of capital is 10% per anmum. Assume the * * company uses a discount rate of 10%. (Work in Emillions to the neares 2 decimal places.) Required: (i) Cakulate the ENPV and standard deviation of project X (ii) State your preferences between projects X and Y. Support your advice with any adititional calculatioes you consider necessary. (iii) Given the information concerning the ENPV *** and standard deviation of the corapany's existing investments and that the correlation coefficients between the returs from the existing assets and those from projocts X and Y are -0.40 and 0.57, respectively, determine which of the two projects would be preferred in conjurktion with the **+ existing portfolio. Support your advice with suitable calculations. (iv) Write a reasoned recommendation as to which project the company should invest in, givea the resalts from i), ii), and iii) *** above, and the information in the question and anything clse you can produce