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After extensive analysis, you determine that the most likely NPV for your expansion project is $675,000. However, there is only a 55% chance of success.
After extensive analysis, you determine that the most likely NPV for your expansion project is $675,000. However, there is only a 55% chance of success. If the expansion fails, you will lose $300,000 in terms of dollars today. What do you report as the expected NPV?
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