Your team is evaluating two mutually exclusive projects. The initial cost of each investment is $50,000. The probability of the cash flows is shown below. If the project will have a 5 year life and the appropriate cost of capital is 9% calculate the following:

Probability	CF(A)	CF(B)
10%	(34,000)	(13,500)
25%	(8,500)	2,125
30%	17,000	19,000
25%	42,500	31,875
10%	68,000	46,750

Expected value

NPV

Standard deviation

IRR

MIRR

Use the information below for the next problem

Depreciation	34,000
EBIT	179,000
Investment in Operating Assets	69,000
Tax Rate	34%
Find the free cash flow

3. Calculate the free cash flow

Use the following information for the next problem

The Security Market Line
	Security X	Market
Beta	0.76	1
Expected Return	?	12%
If the risk free rate is	2.80%
Find the expected return on security X