B Ltd. is considering the renovation of its one of department. The renovation will cost 10 lakh. Its CFAT sensitive to various events as show below:Company estimates that the probability distribution of incremental CFAT will exists for 4 years. The company?s cost of capital is 10%. What is the project expected NPV?(A) ? 3,41,300(B) ? 3,13,400(C) ? 3,31,400(D) ? 3,00,340

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Event Probability I 0.1 II 0.2 III 0.4 IV 0.2 V 0.1 Incremental CFAT 2,00,000 3,00,000 4,00,000 5,00,000 8,00,000 Event Probability I 0.1 II 0.2 III 0.4 IV 0.2 V 0.1 Incremental CFAT 2,00,000 3,00,000 4,00,000 5,00,000 8,00,000

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