1.
=0.2*5750+0.6*6500+0.2*7250=6500
2.
=0.2*0+0.6*6500+0.2*19000=7700
3.
=sqrt(0.2*(5750-6500)^2+0.6*(6500-6500)^2+0.2*(7250-6500)^2)
=474.34165
4.
=474.34165/6500
=0.07298
5.
NPV of A=-6500+6500/1.09+6500/1.09^2+6500/1.09^3=9953.41533
NPV of B=-6500+7700/1.11+7700/1.11^2+7700/1.11^3=12316.60331
Choose Project B
6.
This would make Project B more appealing
7.
This would make Project B more appealing
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