1. Mr. Tamu is considering an international project that will cost $70 million and will generate expected cash flows of $30 million per year for 3 years. The cost of capital for this type of project is 10%. After discussions with the marketing department, he learned that there is a 30% chance of high demand, with future cash flows of $45 million per year. There is a 40% chance of average demand, with future cash flows of $30 million per year. If demand is low (a 30% chance), cash flows will be only $15 million per year.

1. What is the expected NPV?
2. Is this project attractive for investment ?