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3) Epic Games, Inc. is evaluating a project that has a 10-year life and no salvage value. Epic Games, Inc. uses an interest rate of

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3) Epic Games, Inc. is evaluating a project that has a 10-year life and no salvage value. Epic Games, Inc. uses an interest rate of 12% to evaluate this specific project. The project has an uncertain initial cost and net revenue. First Cost $300,000 $400,000 robability $600,000 Net Revenue $70,000 $90,000 $100,000 Probability 0.5 Define the optimistic, most likely and pessimistic scenarios. Then compute the joint probabilits for these scenarios as well as theur respective net present valiue

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