MUST BE IN EXCEL AND SHOW EXCEL CALCULATION

4. FYI NOT like any other in coursehero

The initial investment is $1,500. NPC has the opportunity to invest in a project that has a 75% chance of generating $500 per year for 7-years under good conditions or a 25% chance of generating $25 per year for 7-years. Assuming that all cash flows are discounted at 10%,calculate the effect of waiting on the project's risk, using the same data.By how much will delaying reduce the project's coefficient of variation? (Hint: Use the expected NPV.)

Possible answers

2.23

2.46

2.70

2.97

3.27