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A company wishes to borrow E21 million to invest in a project. There is a 60% probability that the project will result in a net

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A company wishes to borrow E21 million to invest in a project. There is a 60% probability that the project will result in a net cash inflow of 50 million and a 40% probability that the project will result in a net cash inflow of 15 million. The company's only activity is the project. Assuming a zero discount rate, how much will the company have to repay in the favourable state (50 million) for a bank to be willing to make the loan? 21 million B E25 million 26 million None of the above

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