Mutually exclusive project-expected value-standard deviation

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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 a) Expected value b) NPV c) Standard deviation d) IRR e) MIRR.

Reference no: EM131535856

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