1. A project's base case or most likely NPV is $50,000, and assume its probability of

occurrence is 60%. Assume the best case scenario NPV is 70% higher than the

base case and assume the worst scenario NPV is 30% lower than the base case. Both

the best case scenario and the worst case scenario have a 20% probability of

occurrence. Find the project's coefficient of variation. Enter your answer rounded to

two decimal places. For example, if your answer is 12.345 then enter as 12.35 in the

answer box.

2.

Fool Proof Software is considering a new project whose data are shown below. The equipment that will be used has a 3-year class life and will be depreciated by the MACRS depreciation system. Revenues and Cash operating costs are expected to be constant over the project's 10-year life. What is the Year 1 after-tax net operating cash flow? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.
Equipment cost (depreciable basis)					$85,000
Sales revenues, each year					$70,000
Cash operating costs					$29,000
Tax rate					25.0%