Question: QUESTION 4 Al Taqdeer LLC is considering two mutually exclusive projects Tango and Silver Star. Project Tango costs OMR 30,000 and Project Silver Star OMR

QUESTION 4 Al Taqdeer LLC is considering two mutually exclusive projects Tango and Silver Star. Project Tango costs OMR 30,000 and Project Silver Star OMR 36,000. You have been given below the net present value probability distribution for each project: Project Tango Project Silver Star NPV Probability NPV Probability Estimate Estimate (OMR) (OMR) 10,000 10,000 0.2 15,000 20.000 25,000 0.2 20.000 0.2 0.6 0.6 0.2 LCompute the expected net present value of Projects Tango and Silver Star. (4 Marks) ii. Compute the risk attached to each project, ie. Standard Deviation of each probability distribution (4 Marks) Which project do you consider more risky and why? (1 Mark) (C01, P01/ Total 9 Marks)

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