Question: Please provide full answer only for excercise 8 NPV Exercises: 7,8 7. Conduct a discounted cash flow calculation to determine the NPV of the following

Please provide full answer only for excercise 8

Please provide full answer only for excercise 8

NPV Exercises: 7,8 7. Conduct a discounted cash flow calculation to determine the NPV of the following project, assuming a required rate of return of 0.2. The project will cost $75,000 but will result in cash inflows of $20,000, $25,000, $30,000, and $50,000 in each of the next 4 years. NPV = PV of cash benefit - PV of cost Year Discounted Discounting Inflow Outflow Net cash flow factor cashflow (a) (6) (c) (d)=(b)) (f) = ( de) $0 $75000 ($75000) 1 ($75000) 1 $20000 $0 $20000 0.8333 $16666 2 $25000 $0 $25000 0.6944 $17360 3 $30000 $0 $30000 0.5787 $17361 $50000 $0 $50000 0.4823 $24115 NPV PWNHO 502 8. In Exercise 7, assume that the inflows are uncertain but normally distributed with standard deviations of $1,000, $1,500, $2,000, and $3,500, respectively. Find the mean forecast NPV using Crystal Ball. What is the probability the actual NPV will be positive

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