Multiple Choice
Johnson Ltd. determined that the net present value of an investment in technological improvements at its plant in France would be €10,000,000 if pending litigation was resolved in the company's favor and would be €2,000,000 if the courts ruled against the company. Johnson's attorneys in France assessed the probability of a favorable ruling at 70%. What is the expected net present value of the project?
A) €10,000,000
B) €2,000,000
C) €6,000,000
D) €7,600,000
Correct Answer:
Verified
Correct Answer:
Verified
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