An investment project has a cost of P12,000, payable at the start of the first year of operation. The possible future cash flows arising from the investment project have the following present values and associated probabilities: PV of Year 1 cash flows (P) Probability PV of Year 2 cash flows (P) Probability

1. 16,000 0.15
2. 20,000 0.75
3. 12,000 0.60
4. (2,000) 0.25
5. (4,000) 0.25

What is the expected value of the net present value of the investment project?

A. P11,850
B. F28,700
C. P11,100