You are considering investing in one of two projects, which have the following returns and prob$-$ abilities of occurrence. Assume statistical independence among returns of two projects:

Period $0$

$12$

independent.

Cash Flow

A$0$

A$1$

Mean$(\backslash$mu $)-$$$1000$

$$400$ $$1000$

A$2$

$$ Compute the mean and variance of PW of this project at i $=10\%$ if A$0,$A$1,$A$2$ are mutually

Probability $0\mathrm{.}10$

$0\mathrm{.}200\mathrm{.}250\mathrm{.}300\mathrm{.}10$

$0\mathrm{.}05$

$$ Compute the mean return for each project.

$$ Compute the variance return for each project.

$$ Which project would you prefer and why?You are considering investing in one of two projects, which have the following returns and prob$-$

abilities of occurrence. Assume statistical independence among returns of two projects:

Compute the mean return for each project.

Compute the variance return for each project.

Which project would you prefer and why?