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30. 5.00 points Now this to be tolygraded It will be on your color Expected NPV and Real Option Cathcott wat wil on niinimootor OOOO

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30. 5.00 points Now this to be tolygraded It will be on your color Expected NPV and Real Option Cathcott wat wil on niinimootor OOOO dont power come to me shohin the count COM w Wartortler Oudereito forte WA rences Consider a project that has an initial investment cost of $1.5 million, and in one year, will generate $2 million if things go well (good scenario), and $800,000 if things don't go well (bad scenario). Assume the probability of the good scenario is 60%, and that of the bad scenario is 40%. The discount rate is 10 percent (a) What is the NPV of the project? (3 marks) (b) How much would the project have to generate in the bad scenario for the project to be acceptable? (2 marks) V VIVOBOO

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