Multiple Choice
A concert promoter assesses that the probability of a concert being a success is 0.4. The initial cash cost will be £50,000. A success will create a present value of all cash flows of £250,000 and a flop will lose £100,000. What is the expected NPV, using a conventional approach?
A) £10,000
B) £74,000
C) - £10,000
D) £0
Correct Answer:
Verified
Correct Answer:
Verified
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