... assessment of its risk?Your firm, Agrico Products, is considering the purchase of a tractor that will have a netcost of $36,000, will increase pre-tax operating cash flows before taking account of de-preciation ... branch of the decision tree is equivalent to a time line. Thus,the top line, which describes the payoffs under good conditions, has a cash flow of Ϫ$5 million at t ϭ 0 and positive cash flows of $2.5 ... the standard deviation of theNPV, and the coefficient of variation of the NPV?ST-2New project analysisST-1Key termsSELF-TEST PROBLEMS 573Flexibility OptionsIt is often worth spending money...