Find the standard deviation of the projects expected NPV

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Reference no: EM131189150

An investment costs $7,000, after tax considerations, and will generate cash flows of $1,500 a year over its life. The capital investment will last for 7, 8, or 9 years, with probabilities of 0.3, 0.4, and 0.3 respectively. Assume the required rate of return is 10%.

(A) Find the expected NPV of the investment.

(B) Find the standard deviation of the project’s expected NPV.

Reference no: EM131189150

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