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A company is considering a long term investment that requires a $900 investment today, and...

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Accounting

A company is considering a long term investment that requires a $900 investment today, and then in 3 years promises a payout of $864 with prob. 0.4 and a payout of $1,440 with prob. 0.6. If the opportunity cost of capital for the company is 5%, what is the expected net present value?
134.4
144.9
154.1
164.2
image

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