E(CF1) = 1,0000.4 2,0000.5 4,0000.1= 1,800. E(CF2) = 1,5000.3 2,000* 0.6 6,000* 0.1 = 2,250. E(CF3) =

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E(CF1) = 1,000*0.4 2,000*0.5 4,000*0.1= 1,800. E(CF2) = 1,500*0.3 2,000* 0.6 6,000* 0.1 = 2,250. E(CF3) = 3,000* 0.2 3,000 * 0.4 5,000*0.4 = 3,800. E(NPV) = -4,000 1,800/1.1 2,250/1.12 3,800/ 1.13 = 2,350.86

Calculate the variance of the NPV.

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E(CF1) = 1,000*0.4 2,000*0.5 4,000*0.1= 1,800. E(CF2) = 1,500*0.3 2,000* 0.6 6,000* 0.1 = 2,250. E(CF3) =

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Business Statistics Using Excel

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E(CF1) = 1,0000.4 2,0000.5 4,0000.1= 1,800. E(CF2) = 1,5000.3 2,000* 0.6 6,000* 0.1 = 2,250. E(CF3) =