Q.8. A project requires an immediate outflow of cash of OMR 450,000 in return for the following probable cash flows: te of economy Probability End of yea Recession 0.40 100 Growth 0.35 200 Boom 0.25 300 Assume that the state of the economy will be the same in the second year as in the first. The required rate of return is 9 per cent. There is no tax or inflation. (a) Calculate the expected NPV. ( 3 marks) (b) Calculate the standard deviation of NPV. ( 2 marks) Q.8. A project requires an immediate outflow of cash of OMR 450,000 in return for the following probable cash flows: te of economy Probability End of yea Recession 0.40 100 Growth 0.35 200 Boom 0.25 300 Assume that the state of the economy will be the same in the second year as in the first. The required rate of return is 9 per cent. There is no tax or inflation. (a) Calculate the expected NPV. ( 3 marks) (b) Calculate the standard deviation of NPV. ( 2 marks)