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Pror to the investment progressing, further research has been undertaken and it has been identified that the selling price ofE2 per box is unlikety
Pror to the investment progressing, further research has been undertaken and it has been identified that the selling price ofE2 per box is unlikety to be achieved. It is that competitors will be selling a similar product and the prZe of E2 will upon the competitors' price The following information has been provided with regard to the possible selling price: Competitor s price Probability Tea Ltd selling price Required. Higher than 2 Lower than E2 El.80 Equals 2 El.95 d) Calculate the expected lling price of the box, determine Its effect on the NPV of the prqect and discuss the Implicatbns. (B marks) ANSWER:
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