In smart ville the chart is the following

Year 1 : 150,175,300 Prob: 0.30,0.40,0.30

Year 2: 200,210,250, Probabitilty : 0.35,0.45,0.20

Year 3: 350,370,400 Prob:0.30,0.25,0.45

Year 4: 300,360,375 Prob: 0.25,0.35,0.40

In sanville

Calculate the projects best npv What is the probability of best npv Calculate the projects worst npv

Documento 1 ncias Correspondencia Revisar Microsoft Word (Error de activacin de productos) Vista Aa" 43 E 21 aby - A Parraio bccDt . I Normal Sin espa.... Titulo 1 Titulo 2 Titulo Subtitu 21.11.20135.4.1.5.15 Estilos 1.8 1.9 1. 102 110 12 113 114 115 116 117 118-1 capital is 8% Sanville Quarries is considering acquiring a new drilling machme that is expected to be more efficient than the current machine. The project is to be evaluated over four years. The initial outlay required to get the new machine operating is 5675,000. Incremental cash flows associated with the machine are incertain, 30 management developed the following probabilistic forecast of cash flows by year (5000). Sanville's cost of Year 1 Year 2 Prob S150 175 300 Prob 30 40 30 Prob S200 210 250 .45 20 Year 3 $350 370 400 Prob 30 25 45 Year 4 $300 360 375 2. 40 a. Calculate the project's best NPV Round the answer to the nearest whole dollar. Enter your answer in dollars and not in thousands of dollars and don't include the "S" or commas. For example, an answer of SI thousand should be entered as 1000 not 1. What is the probability of best NPV? Round the answer to five decimal places. (Enter your answer 23 a decimal, not a percent) 6. Calculate the project's worst NPV. Round the answer to the nearest whole dollar. Enter your answer in dollars and not in thousands of dollars and dont include the "S" or commas. For example, an answer of Si thousand should be entered as 1000 not 1. s! What is the probability of worst NPV Round the answer to five decmal places (Enter your answer as a decimal, not a percent. 8. b. What is the value of the mostlikely NPV outcomel Round the answer to the nearest whole dollar Enter your answer in dollars and not in thousands of dollars and dont include the "S" or commas. For example, an answer of Si thousand should be entered as 1000 not i. (Hint Don tuse the middle value for each vear. Rather, calculate the expected value of each vear's cash flow) cias Correspondencia Revisar activacin de productos) Vista Aa 2 aby - A bccDC Normat Sin espa . Titulo 1 Titulo 2 Titulo Sub Parrafo 2.1.1 : 1234 Estilos 6:09 10 11 12 13 1-14 115 116 117 118 1. QUESTION 1 Captain Obvious Corp. ("COC") is considering a real estate development project that will cost $5 million to undertake and is expected to produce annual inflows between sl million and S4 million for two years. Management feels that if the project turns out really well the inflows will be $3 million in the first year and $4 million in the second. If things go very poorly, on the other hand, inflows of $1 million followed by 2.5 million are more likely. The company's cost of capital is 10%. IE COC's management attaches a probability of 7 to the better outcome, what is the projects most likely (expected) NPV Round the answer to the nearest dollar. Enter your answer in dollars without "S" or commas. For example, an answer of 1.2 million should be entered as 1200000.not 1.2. 16 points