Q. 4 Nimby plc is considering two mutually exclusive projects; Delphi and Oracle. The possible NPVs for each project and their associated probabilities are as follows:

Delphi		Oracle
NPV (m)	Probability of occurrence	NPV (m)	Probability of occurrence
20	0.2	30	0.5
40	0.6	40	0.3
60	0.2	65	0.2

Required:

1. Calculate the expected net present value and the standard deviation of NPV associated with each project.
2. Which project would you select and why? State any assumptions that you have made in coming to your conclusions.