A project has three phases, concept, development, and launch, that are expected to cost $5M, $15M, and

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A project has three phases, concept, development, and launch, that are expected to cost $5M, $15M, and $4M, respectively. The likelihoods of success for the three phases are 0.5, 0.8, and 0.7, respectively. If the estimated NPV of future earnings is $90M, what is the ECV for the project?

[Answer: $11.1 M.]

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