The Yoran Yacht Company (YrC), a prominent sallboat bullder in Newport, may design a new 30-foot sallboat based on the "winged" keels first introduced on the 12-mmeter yaches that raced for the America's Cup. First, YrC would have to invest $18,000 at t=0 for the design and model tank testing of the new boat, Mrc's managers believe there is a 60% probability that this phase wil be successful and the project will continue. If Stage 1 is not successful, the project will be abandoned with zero salvage value. The next stage, If undertaken, would consist of making the molds and producing two prototype boats. This would cost $500,000 at t=1. If the boats test well, YrC would go into production. If they do not, the molds and prototypes could be sold for $100,000. The managers eatimate that the probability is 80% that the boats will pass testing and that Stage 3 will be undertaken. Stage 3 consists of converting an unused production line to produce the new design. This would cost $1 million at t=2. If the economy is strong at this point, the net value of sales would be $3 million; If the economy is weak, the net value would be $1.5 million. Both net values occur at t=3, and each state of the economy has a probab lity of 0.5 . Yrcs corporate cost of capital is 13% a. Assume this project has average risk. Construct a decision tree and determine the project's expected NPV. Do not round intermediate calculations, Enter your answer in dollars. For example, an answer of $2 million should be entered as 2,000,000. Round your answer to the nearest cent. 5 b. Find the project's standard deviation of NPV and coefliciens of variation of NPV. Do not round intermediate calculations. Enter your answer for standard deviation in dollars. For example, an answer of $2 miltion should be entered as 2,000,000. Round the projects standard deviation to the nearest cent and CV to two decimal plsces owev: 2 CVivis: If YyC's average project had a CV of between 1.0 and 20 , would this project be of high, low, or average stand-alone risk? This project is of