A one-period project requires an investment of $2 million, and will generate an expected cash flow of $2.25 million at t=1 with a variance of $71,296,000,000.
a. the NPV of this project is positive if the discount rate is less than 12.5%.
b. the variance of the return on the project is 0.000324.
c. the standard deviation of the return on the project is 1.8%.
d. all of the above.