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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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