33. The manager of Good-Morning Stores is considering opening a new store in the rapidly expanding NOIDA. Two sizes of the store are under consideration: Regular and Large. The initial costs, expected demand situation and profits along with their probabilities are:

Assuming a discount rate of 10%, you are required to calculate expected value of NPV for each proposal and its standard deviation. Use decision-tree approach.

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Initial costs Demand Year 1 Year 2 Store Size ('000 Rs) situation Profit ('000) Prob. Profit ('000) Prob. (a) Regular 160 Low 60 0.2 100 0.2 Medium 100 0.5 160 0.4 High 150 0.3 200 0.4 (b) Large 200 Low 50 0.6 120 0.4 Medium 120 0.3 180 0.3 High 200 0.1 220 0.3