QUESTION III A project has the following cash flows: Cash Flow 60,000 Year 1 80,000 QUESTION IN Probability 0.6 Cash Flow 40,000 50,500 70,000 90,000 30,000 100,000 Year 2 Probability 0.5 0.3 0.4 0.1 The projects initial cash outlay is Sh. 100,000 with a cost of capital of 12%. Determine: i) The projects expected monetary value (EMV)? (8 marks) ii)The projects NPV?

A project has the following cash flows: The projects initial cash outlay is Sh. 100,000 with a cost of capital of \12. Determine: i. The projects expected monetary value (EMV) (8 marks) ii. The projects NPV