Question: Your team is evaluating two mutually exclusive projects. The initial cost of each investment is $ 5 0 , 0 0 0 . The probability

Your team is evaluating two mutually exclusive projects. The initial cost of each investment is $50,000. The probability of the annual cash flows is shown below (note these cash flows and probabilities are the same each year). 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%17,00019,000
25%42,50031,875
10%68,00046,750
a) Expected cash flow per year
b) Standard deviation
c) NPV
d) IRR
e) MIRR

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