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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?
Economic Generalization
Broad statements or principles about economic behavior that apply to different contexts and situations.
Principle
A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.
Anomaly
An irregularity or deviation from what is standard, normal, or expected.
Hypothesis
A proposed explanation for a phenomenon, serving as a starting point for further investigation or experimentation.
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