Exercise - I need the solution written by hand since I have no idea about Excel and we are not allowed to use it in the exam The Finance department of WC Ltd. has estimated the following net cash flows and probabilities for a new manufacturing process with investments in period 0, net cash flows in periods 1-5 and a potential residual value at the end of period 5:

For P=0.2 the following CFs: -100/20/20/20/20/20/0 (RV)

For P=0.6 the following CFs: -100/30/30/30/30/30/20 (RV)

For P=0.2 the following CFs: -100/40/40/40/40/40/30 (RV) WC Ltd.'s cost of capital for an average-risk project is 10 percent. a. Identify the projects expected NPV. Assume that the project has average risk.

b. Identify the best case and worst-case NPVs.