Use the Following Information to Answer the Following Question(s)

question 3

Multiple Choice

Use the following information to answer the following question(s) .
Enrico,the owner of a pizza parlor near a large university campus,is considering opening a shop specializing in quick,inexpensive take-out meals that are low in fat and calories.He will use a vacant space adjacent to the pizza parlor.Assume that the project requires an initial cash outlay of $100,000.Finance students from the university have taken on the project as a course assignment.They believe that there is a 50% chance that the project will have modest success and return $11,000 per year for the foreseeable future (a perpetuity) .On the other hand,there is a 50% chance that the project will be highly successful and produce returns of $20,000 per year in perpetuity.If the restaurant is modestly successful,Enrico will keep it open,but not expand.If it is well received,he will immediately open 2 more shops at sites close to the sprawling campus.The additional shops would have approximately the same cash flow as the first.Cash flows will be discounted at 10%.
-What is the expected NPV of the project with the option to expand if the probability of modest success is revised to 70% and great success to 30%?

• A)$310,000
• B)$155,000 (no change)
• C)$213,000
• D)$97,000

Describe the function and use of instant messaging in both personal and professional contexts.

Understand the characteristics and uses of digital media files, particularly podcasts.

Recognize the structure and purpose of internal corporate communication platforms and their similarities to the internet.

Understand the purpose and components of the statement of cash flows.

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Definitions:

Problems

Situations, tasks, or puzzles that require solutions, often necessitating thought, strategy, or creativity to resolve.

Limits of Competence

Ethical principle that professionals should only provide services for which they are qualified by training and experience.

Appropriate Use

The correct or suitable application of something according to established guidelines or principles.

Decisions Based

The process of making choices or conclusions grounded on evidence, data, or a set of criteria.