A project has the following cashflows Year 1 Cashflow Year 2 Probability 60,0000.3 50,000 Cashflow Probability...

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A project has the following cashflows Year 1 Cashflow Year 2 Probability 60,0000.3 50,000 Cashflow Probability 0.3 60,000 0.5 70,000 0.2 80,0000.4 60,000 0.3 80,000 0.5 100,000 0.2 100,000 0.3 80,000 0.3 100,000 0.5 120,000 0.2 The projects initial cash outlay is Sh 100,000 with a cost of capital of 12% Required: Determine: (t) The projects expected monetary value (EMV) (b) The projects NPV Consider two investments A & B each having the following characteristics: Investment B REQUIRED: Expected Return (%) 20 40 Proportion 2/3 1/3 Compute the portfolio standard deviation if the correlation coefficient between the assets is a 1 b. 0 c. -1 A project has the following cashflows Year 1 Cashflow Year 2 Probability 60,0000.3 50,000 Cashflow Probability 0.3 60,000 0.5 70,000 0.2 80,0000.4 60,000 0.3 80,000 0.5 100,000 0.2 100,000 0.3 80,000 0.3 100,000 0.5 120,000 0.2 The projects initial cash outlay is Sh 100,000 with a cost of capital of 12% Required: Determine: (t) The projects expected monetary value (EMV) (b) The projects NPV Consider two investments A & B each having the following characteristics: Investment B REQUIRED: Expected Return (%) 20 40 Proportion 2/3 1/3 Compute the portfolio standard deviation if the correlation coefficient between the assets is a 1 b. 0 c. -1