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A company is considering to take a 3 year project with $ 3 0 million initial cost. If the demand is high, the project will
A company is considering to take a year project with $ million initial cost. If the demand is high, the project will generate cash flow of $ million each year. If the demand is average, the project will generate cash flow of $ million each year. If the demand is low, the project will generate cash flow of $ million each year. The cost of capital for the project is The probability of high demand, average demand, and low demand are and respectively. What is the expected value of this project?
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