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Question: Assume $100,000 outlay for an investment with two possible payoffs: $100,000

.04 Probability $50,000

0.6 Probability $200,000

(a) Determine the expected net present value of the investment.

(b) What is the NPV of the worst event and what is the probability of it to occur?

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Category:- Basic Finance
Reference No.:- M92774381

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