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A firm is evaluating a product. The market demand for the product can be low or high. The product requires an investment of $1,040. If
A firm is evaluating a product. The market demand for the product can be low or high.
The product requires an investment of $1,040.
If the market demand is high, then there is a 40% chance that the product will sell for $900 and a 60% chance it will sell for $1,250.
What is the NPV of the project if the market demand is high?
Remember, if your answer is negative, then don't forget to put a - sign before your answer. For example, if your answer if negative 100, you should enter -100 in the answer box.
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