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Exhibit 5: Triple D Corporation's investment choices Game Initial Investment Sign Away $140,000 Present value of Probabilities cash inflows 1.00 $320,000 0.30 220,000 0.50 -80,000
Exhibit 5: Triple D Corporation's investment choices Game Initial Investment Sign Away $140,000 Present value of Probabilities cash inflows 1.00 $320,000 0.30 220,000 0.50 -80,000 0.20 1.00 $120,000 Monopolistic Competition $260,000 200,000 -50,000 0.20 0.45 0.35 Question 4 (20 marks)[Exhibit 4] (a) What is the expected value NPV for each game? (4 marks) (b) What is the expected profitability index for each game? (4 marks) (c) What is the standard deviation for each alternative? (9 marks) (d) Which alternative will you choose? Explain your
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