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No its not homework, its a practice in book for exam:

Investment timing option: Digital Inc. is considering production of a new cell phone. The project would require an investment of $20 million. If the phone were well received, then the project would produce cash flows of $10 million a year for 3 years, but if the market did not like the product, then the cash flows would be only $5 million per year. There is a 50% probability of both good and bad market conditions. Digital could delay the project for a year while it conducts a test to determine if demand would be strong or weak. The delay would not affect either the project?s cost or it cash flows. Digital?s WACC is 10%. Use the table below to determine the Expected NPVs, standard deviations and coefficient of variations, as well of the value of the investment timing option. What action would you recommend?

Values i need:

Scenario: Invest Immediately
Condition Probability 2007 2008 2009 2010 NPV

Expected NPV
Standard Deviation
Coefficient of Variation


Scenario: Wait a year
Condition Probability 2007 2008 2009 2010 NPV

Expected NPV
Standard Deviation
Coefficient of Variation

(I need cash flows for the years for the periods)

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