A project has three possible outcomes. The NPV and probabilities for each outcome are shown...
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Accounting
A project has three possible outcomes. The NPV and probabilities for each outcome are shown below:
| CASE: | NPV: | Probability |
| BAD | -$4,000 | 0.20 |
| AVERAGE | $500 | 0.50 |
| GREAT | $10,000 | 0.30 |
What is the expected NPV for this project if our assumptions are correct?
Question 24 options:
| $1,050 | |
| $2,450 | |
| $4,250 | |
| $2,167 | |
| $600 |
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