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A consulting company has conducted a scenario analysis to help assess the value of a foreign direct investment for a client. They consider a currency
A consulting company has conducted a scenario analysis to help assess the value of a foreign direct investment for a client. They consider a currency appreciation and currency depreciation equally likely. They believe that the probability of a reduced salvage value is 10%. Here is the result of the scenario analysis Scenario --> NPV in scenario currency depreciates and salvage value is not reduced --> NPV= 100,000 currency appreciates and salvage value is not reduced --> NPV= 150,000 currency depreciates and salvage value is reduced --> NPV= -80,000 currency appreciates and salvage value is reduced --> NPV = -20,000 = What is the expected net present value of the FDI? Round your answer to the nearest integer
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