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Posted on Jun 10, 2024

Initial outlay = 2,900,000 good time (40%) probability = 1,800,000 after tax for 3 years bad time (60%) probability = 450,000 after tax for 3

Initial outlay = 2,900,000

good time (40%) probability = 1,800,000 after tax for 3 years

bad time (60%) probability = 450,000 after tax for 3 years

option to abandon if bad time at end of year 1 after receiving the 45,000 and can sell at assets at end of year 1 at 2,000,000. what is the NPV?

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