There Is a 20% Probability That the NPV of a Project

question 19

Multiple Choice

There is a 20% probability that the NPV of a project will be $20 million,a 50% probability that it will be sold for $45 million and a 30% probability that it will be for $15 million.What is the expected NPV of the project?

• A)$17.5 million
• B)$45 million
• C)$31 million
• D)$26.67 million

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