Question: 3) Consider two projects A and B. Each project requires an initial investment of S 800.00. The annual cash flow of each project is 400.00.

3) Consider two projects A and B. Each project requires an

3) Consider two projects A and B. Each project requires an initial investment of S 800.00. The annual cash flow of each project is 400.00. The lives of these projects are random variables with the following probability distributions: PIN 0.2 0.30 0.4 0.30 0.4 0.40 Find the ECNPVJ and VarlNPV] of these projects and then select the best project, based on E [NPV] and Var [NPV]. Use MARR 15%

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