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Assume that the ner present worth of a project was computed for 3 different scenarios, setting the relevant input variables to values that would occur
Assume that the ner present worth of a project was computed for 3 different scenarios, setting the relevant input variables to values that would occur under the expected, optimistic, and pessimistic scenarios. The net present worth was computed to equal $20,000 under the expected scenario, $50,000 under the optimistic scenario, and -$70,000 under the pessimistic scenario. The probability of the expected scenario turning out to be accurate is 50%, the probability of the optimistic scenario being accurate is 30%, and the probability of the pessimistic scenario being accurate is 20%. What is the expected net present worth of the project? Select one: a. $47,000 b. $21,000 C. 50 d. $11,000 e. $140,000 f. $39,000
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