Please help with question #20!

Question #20 has been posted below, what is wrong?

19. discount rate How Country Risk Affects NPV Monk, Inc. Explain. is considering a capital budgeting project in Tunisia. 22. Intes The project requires an initial outlay of 1 million Budgetin Tunisian dinars, the dinar is currently valued at $0.70. asked to In the first and second years of operation, the proj- Co. in G ect will generate 700.000 dinars in each year. After need to st two years, Monk will terminate the project, and the this proj expected salvage value is 300,000 dinars. Monk has from Gr assigned a discount rate of 12 percent to this project. mance The following additional information is available: Grecia There is currently no withholding tax on remittances corrup to the United States, but there is a 20 percent chance that the Tunisian government will impose a withhold- Greci ing tax of 10 percent beginning next year. sultir There is a 50 percent chance that the Tunisian gov- conc ernment will pay Monk 100,000 dinar after two years that instead of the 300,000 dinars it expects. WOI The value of the dinar is expected to remain per me unchanged over the next two years. G I a. Determine the net present value of the project in each of the four possible scenarios. b. Determine the joint probability of each scenario c. Compute the expected NPV of the project and make a recommendation to Monk regarding its feasibility. 20. How Country Risk Affects NPV In the pre- vious question, assume that instead of adjusting the estimated cash flows of the project, Monk had decided to adjust the discount rate from 12 to 17 percent. Reevaluate the NPV of the project's expected scenario using this adjusted discount rate. 1. Risk and Cost of Potential Kidnapping 20. How Country Risk Affects NPV In the pre- vious question, assume that instead of adjusting the estimated cash flows of the project, Monk had decided to adjust the discount rate from 12 to 17 percent. Reevaluate the NPV of the project's expected scenario using this adjusted discount rate. ex ye t