Using the data from Example 6.1, let us assume that all the factors are known with certainty

Question:

(impossible in real life) except sales volume.

Extensive market research suggests that annual demand will be:

l 4000 units (0.2 probable), or l 4500 units (0.5 probable), or l 5000 units (0.3 probable).

What are the possible outcomes (in terms of NPV ) and how probable is each one?

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