Indiana Inc. is appraising an investment project which has an expected life of four years,...

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Indiana Inc. is appraising an investment project which has an expected life of four years, and which will not be repeated. The initial investment to start the project is OMR 4.9 to 5.2 million (pick any number between the range randomly). A scrap value of OMR 450,000 to 500,000 (pick any number between the range randomly) is expected to be received at the end of four years. There is some uncertainty about what price can be charged for the units produced by the investment project, as this is expected to depend on the future state of the economy. The following forecast of selling prices and their probabilities has been prepared

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