Question
At stage 2 (1 year from now) of the decision tree, it shows that if a project is successful, the payoff will be $49000 with
At stage 2 (1 year from now) of the decision tree, it shows that if a project is successful, the payoff will be $49000 with a 70% chance of occurrence. If unsuccessful, the payoff is $-24000. The cost of getting to stage 2 is $43000. The cost of capital is 15%.
What is the NPV of the project at stage 1 (year 0)?
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Exchange Rates and International Finance
Authors: Laurence Copeland
6th edition
273786040, 978-0273786047
