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(NOTE: ENTER YOUR ANSWER WITHOUT THE $ AND COMMA, ROUNDED TO THE NEAREST DOLLAR, for instance as 10023, not as $10,022.78. Insert the negative sign
(NOTE: ENTER YOUR ANSWER WITHOUT THE $ AND COMMA, ROUNDED TO THE NEAREST DOLLAR, for instance as 10023, not as $10,022.78. Insert the negative sign in front of your answer if it is negative. Do not round intermediate calculations!) Supersmart Consulting PPL is evaluating a client's proposed project. The project's initial investment is $48,000, and the project is expected to last for 2 years. Two scenarios were identified for each year of the project, an optimistic one and a pessimistic one. The probability that the project will go well in year 1 is 68%. If this is the case the project will bring 541,000 in year 1, and there would then be a 79% probability it will bring $61,000 in year 2, and a 21% probability it will bring $21,000 in year 2. The probability that the project will go poorly in year 1 is 32%. If this is the case the project will bring $9,000 in year 1, and there would then be a 12% probability it will bring $49,000 in year 2, and a 88% probability it will bring $19,000 in year 2. Assuming 7% cost of capital, compute the expected net present worth of the project
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