The XTRON product requires a 1 million investment in one years time if management should decide to
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The XTRON product requires a €1 million investment in one year’s time if management should decide to launch the product. The project sponsor thinks that the NPV will be €200,000, but the probability is 20% that the NPV will be – €100,000 instead. How much value can management expect this investment to add for shareholders at that time?
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