Earth Sciences homework help. “Chapter 12 Project Risk Analysis *- PROBLEM 2 Hex wood Diagnostic Enterprises is evaluating a project with the following net cash flows and probabilities: Year Prob=0.2 Prob=0.6 Prob=0.2 0 -$100,000 -$100,000 -$100,000 1 $20,000 $30,000 $40,000 2 $20,000 $30,000 $40,000 3 $20,000 $30,000 $40,000 4 $20,000 $30,000 $40,000 5 $30,000 $40,000 $50,000 The Year 5 values include salvage value. Hey wood’s corporate cost of capital is 10 percent. d. What is the project’s standard deviation of NPV?Must Show All Work.Question:YearNet cash flowProbability012345 0.2(100,000)20,00020,00020,00020,00030,000 Cost of capitalSolutionNPV 0.6(100,000)30,00030,00030,00030,00040,00010% 0.2…