Question: Your company is considering a project with an initial outlay of $1,000 in year zero and the following cash flows over the next 4 years:

Your company is considering a project with an initial outlay of $1,000 in year zero and the following cash flows over the next 4 years:

Year	Cash flow
1	200
2	300
3	400
4	500

Assuming cost of capital is 11%:

Use Scenario manager to calculate Expected NPV (format your answer to 2 decimal places) given the following three scenarios and their probabilities of occurrence:

Scenario	Cost of capital	Probability
Best case scenario	9%	25%
Most likely case Scenario	11%	55%
Worst case scenario	13%	20%

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