osoft Word (Error de activacin de Herramientas de imagen las Correspondencia Revisar Vista Formato | . 4 Normal 1 Sin espa... Ttulo 1 Ttulo 2 Titulo Prrafo Estilos 12 1111:1:1:21:31:4:1:5116117118.1.9. 10:1 -110 112 113 114 115 116 117 118 QUESTION 4 1. Boiler Room Inc. manufactures office furniture. The firm is interested in "ergonomic" products that are designed to be easier on the bodies of office workers who suffer from ailments such as back and neck pain due to sitting for long periods. Unfortunately, customer acceptance of ergonomic furniture tends to be unpredictable, so a wide range of market response is possible. Management has made the following two-year probabilistic estimate of the cash flows associated with the project arranged in decision tree fomat (S000). 0357.000 $4.900 36.000 55.000 $3.000 04 Boiler Room is a relatively small company, and would be seriously damaged by any project that lost more than $1.5 million. The firm's cost of capital is 14% 1. Develop a probability distribution for NPV based on the forecast. In other words, calculate the projects NPV along each path of the decision tree and the associated probability. Do not round intemediate calculations. Round PVF values in intemeiate calculations to four decimal places. Round the answers to two decimal places. Enter your answer in thousands of dollars and not in whole dollars; leaving off the "S". For example, an answer of thousand should be entered as I not 1,000. Use a minus sign to indicate a negative NPV. Enter probabilities as decimals...5.0.20 NPV (5000) Probability Path 1 $ Path 2 $ Path 3 Path 4 2. Calculate the projects expected NPV (5000). Do not round intemeiate calculations. Round PUF values in intermediate calculeions to four decimal places. Round the met two decimal places. Enter your answe