Company Y has conducted a risk assessment on a project it is considering. The company adjusts its

WACC by adding a risk premium based on the coefficient of variation of a project as follows:

CV Adjustment

0% -50% -1%

50% - 70% 0%

71% - 90% 3%

The project has a coefficient of variation of 80% associated with it.

The project has the following net cash flows associated with it:

Year 0 Year 1 Year2 Year 3 Year 4 Year 5

-R100 R50 R20 R30 R40 R60

The company has a WACC of 15%. What is the risk adjusted NPV of the project?