Make sure to show the formulas and excel calculations.

Make sure to use the conventional NPV Analysis and there can be a good and bad result for this investment.

The probability of a successful project (or pilot) is now 70% and the probability of an unsuccessful project is 30%.

The Good Result: The Free Cash flow perpetuity (Annual Benefits) in the good case is $15 million per year and the Bad Result: The system proves to be more difficult to implement and improvements in management of the supply chain are less.

The growth in market demand for the product is lower. The Free Cash flow perpetuity

(Annual Benefits) in the "bad" case is now $1.5 million per year, not $2 million.

Given: Year 0 (currently) cash flows: $-100 million for ERP purchase and implementation.

Using traditional "all or nothing" NPV analysis, calculate the expected NPV of the project. Decide if you will invest. The cost of capital is (0.1).

Show the excel calculation and formula of the PV of the good perpetuity and the PV of the bad perpetuity.

Show the excel calculation and formula of the good NPV and the bad NPV.

Show the excel calculation and formula for the expected NPV and decide if you will invest.