Chapter 12. Problem 16, page 410. Net present value method (L012-4) Skyline Corp. will invest $130,000 in a project that will not begin to produce returns until after the 3rd year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual cash flow will be $34,000. If the cost of capital is 12 percent, should this project be undertaken? Chapter 13. Problem 2 page 439. Expected value and standard deviation (LO13-1) Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next: Possible Sales Market Reaction in Units Probabilities 20 10 40 30 High response 55 Very high response 70 20 What is the expected value of unit sales for the new product? 5 What is the standard deviation of unit sales? Low response Moderate response 40