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James Industries is considering the following investment project. The initial investments, cashflows, WACCs, and probability of each scenario (optimistic, average, pessimistic) are given in the

James Industries is considering the following investment project. The initial investments, cashflows, WACCs, and probability of each scenario (optimistic, average, pessimistic) are given in the following table (CF stands for cashflow)

Optimistic

Average

Pessimistic

CF (Probability = 30%)

CF (Probability = 40%)

CF (Probability = 30%)

0

-770

-1,025

-1,280

1

3,320

525

-1,560

2

3,151

425

-1,679

3

2,940

320

-1,685

4

2,657

150

-1,776

Probability

30%

40%

30%

WACC

7.25%

10.35%

12.75%

What are the expected NPV, the standard deviation, and the coefficient of variation of the project?

PLEASE SHOW ALL WORK OR EXCEL FUNCTIONS FOR THUMBS UP

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