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Case 2 Celsea Logistics is considering an investment in a project that requires an initial...

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Case 2 Celsea Logistics is considering an investment in a project that requires an initial investment of P6,000 with a projected after-tax cash inflow generated over the next 3 years as follows Period Period 2 Probability Period 3 Probability .10 Cashflow P1,000 P2.000 P3,000 P4,000 Probability Cashflow P1,000 P2,000 P3.000 P4.000 Assume that probability distributions are independent and the after-tax risk free raie of Cashflow P1 000 P2.000 P3,000 P4,000 .2 3 30 4 4 20 3 40 .2 return is 6 percent. Calculate: a) expected net present value of the project b) standard deviation of the expected NPV c) the probability that the NPV will be zero or less assume that the probability distribution is normal d) the probability that the NPV will be greater than zero e) the probability that the NPV will be greater than the expected value

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