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A potential new project would cost $3000 today. The project would last 2 years. There are 3 possible scenarios for net cash flows in years
A potential new project would cost $3000 today. The project would last 2 years. There are 3 possible scenarios for net cash flows in years 1 and 2: 1) $2,201 per year, with 20% probability; 2) $1,730 per year, with 60% probability; 3) $1,005 per year, with 20% probability. The cost of capital is 7%. The expected NPV of the project is $_ Margin of error for correct responses: +/- $.10. Rounding and Formatting instructions: Do not enter dollar signs or commas in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (example: if your answer is $12.34567, you should enter 12.35). If your answer is negative, be sure to enter a negative sign preceding the number
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