Question: Please assist with question 2 and 7 Question 7 A project requires an immediate outflow of cash of R400 000 in retum for the w

 Please assist with question 2 and 7 Question 7 A project

requires an immediate outflow of cash of R400 000 in retum for

Please assist with question 2 and 7

Question 7 A project requires an immediate outflow of cash of R400 000 in retum for the w probable cash flows: Sate of Economy Recession Growth Boom Probability 0.3 0.5 0.2 End of year 1 (Rands) End of year 2 Rands) 100 000 150000 300 000 350.000 500 000 550.000 Assume that the state of the economy will be the same in the second year as in the first the required rate of return is 8%. There is no tax or inflation 7.1. Calculate the expected NPV. 10 UNISA Graduate School of Bus Page 10 of 16 000 00 000 OSE POE SZOZ ZOZ EZOZ ZZOZ MBL5903 Module overview - Strategic frawda week 7.2. Calculate the standard deviation of NPV and the coefficient of variance of the NPU Interpret these results taking into consideration the state of the economy Question 8 16 marks Mr Patel has approached you for advice on how best to invest his savings. You propone that invest all his savings in shares in either Sanlam or Sasoi. Alteratively, he could hese two (share companies). There are three possible states eturns on Sanlam and Sasol shares

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