Questions:

1. A project requires an investment in year 0 of IDR 1.20 million. The net cash inflows (in million) in years 1 and 2 and their probabilities are as follows. Calculate the expected cash mask and the standard deviation of cash inflows in year 1 and year 2.

1st Year	2nd Year
probabilities cash in 0,30 IDR 600 0,40 IDR 800 0,30 IDR 1,000	probabilities cash in 0,30 IDR 700 0,40 IDR 900 0,30 IDR 1,100

2. Based on the information in question number 1, suppose the risk-bearing interest rate is 5%, and the cash flows are independent. Calculate the E(NPV) and NPV of the investment.

Note: please provide the answer in Ms. Excel