Your Firm Is Considering Investing in a New Project

question 121

Multiple Choice

Your firm is considering investing in a new project.If the economy is strong (30% probability) ,you expect an NPV of $500,000; if the economy is normal (50% probability) ,you expect an NPV of $400,000; and if the economy is weak (20% probability) ,you expect an NPV of $300,000.What is the expected NPV of the project?

• A)$390,000
• B)$400,000
• C)$410,000
• D)None of the above

---

Definitions:

Population Growth Rate

The population growth rate is a measure of how the number of individuals in a population increases or decreases over time, usually expressed as a percentage.

Economic Development

The process by which the overall health, wellbeing, and economic capabilities of a country improve, often through targeted policies and investments.

Available Resources

Assets, materials, and inputs that can be utilized to produce goods and services.

Per Capita Incomes

The mean income received by an individual in a specific region or nation, determined by dividing the sum of all incomes by the number of people.