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plz help (b) A business project needs an immediate cash input of 4.0 million in retum for the estimated cash flows (Table 3). Assume that
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(b) A business project needs an immediate cash input of 4.0 million in retum for the estimated cash flows (Table 3). Assume that the state of the economy will be same in the second year as in the first. The risk-adjusted discount rate is 10%. Caiculate the following: (i) The expected Net Present Value (NPV). (4 marks) (ii) The standard deviation of NPV (4 marks) (iii) The probability of NPV being less than zero assuming a normal distribution of return. (4 marks) (iv) Interpret the figure calculated in (iii). (4 marks) Step by Step Solution
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