Information relates to Questions 7 to 10 You have been asked to evaluate a project using the certainty equivalent method. You have been provided with the following information: Scenario JSE Return Cash Flow Probability 0.226 Fantastic 0.545 9769 Good 0.179 0.217 6003 Mediocre 0.221 0.067 4118 Bad 0.108 -0.051 63 Horrible 0.266 -0.149 -600 Risk-Free Rate 0.075 45782 Project Cost GDP Growth (Nominal) 0.028 7. The covariance between the market and cash flow is closest to: a. 1138.56 b. 988.90 c. 197.78 d. 535.19 8. The variance of the market closest to: a. 0.0262 b. 0.0386 c. 0.0736 d. 0.0654 9. The cash flow beta is closest to: a. 13 441.80 b. 15 121.78 c. 17 410.26 d. 15 476.05 10. The NPV of the project is closest to: a. -4656.44 b. 21 931.64 C. 41 125.56 d. 19 843.89