Q$18.$ You are in a two$-$period world where a risk$-$free and risky asset are traded, see the

figure below for the prices and payoffs. You have a project that costs $7$ at time zero

and pays $8$ in the up and then up state, $9$ in the up and then down state, $10$ in the

down and then up state, and $11$ in the down and then down state. What is the NPV

of this project? Correct answer: NPV is $0\mathrm{.}925.$