Your management team has put together the following projections for a project that your company may be interested in implementing.

Demand	Probability	Annual Cash Flow
High	20%	$100,000,000.00
Average	60%	$40,000,000.00
Low	20%	$10,000,000.00
Project's cost of capital		12%
Life of project		3
Required investment		$75,000,000.00

Use this information to answer the following questions.

1- Use the decision-tree procedure to project the expected standard deviation for the proposed project, ignoring any real option.

[Round the final answer to the nearest cent]

2- Use the decision-tree procedure to project the expected NPV for the proposed project, considering an investment timing option to wait one year before implementation.

[Round the final answer to the nearest cent]

3- Use the decision-tree procedure to project the expected standard deviation for the proposed project, considering an investment timing option to wait one year before implementation.

[Round the final answer to the nearest cent]

4-Use the decision-tree procedure to project the expected option value for the proposed project, considering an investment timing option to wait one year before implementation.

[Round the final answer to the nearest cent]

5- Use the Black-Scholes model to calculate the value of the timing option to wait one year if the strike price is the cost of the project, the risk-free rate is 2.5%, and the variance in future cash flows is 0.25.

[Round the final answer to the nearest cent]

6-Use the decision-tree procedure to project the expected NPV for the proposed project, considering a growth option to launch a second-generation project with the same cost and cash flows.

[Round the final answer to the nearest cent]

7-Use the decision-tree procedure to project the expected standard deviation for the proposed project, considering a growth option to launch a second-generation project with the same cost and cash flows.

[Round the final answer to the nearest cent]

8-Use the decision-tree procedure to project the expected option value for the proposed project, considering a growth option to launch a second-generation project with the same cost and cash flows.

[Round the final answer to the nearest cent]