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Problem 15.2 Heywood Diagnostic Enterprises is evaluating a project with the following net cash flows and probabilities: Year Prob = 0.2 Prob = 0.6 Prob

Problem 15.2

Heywood Diagnostic Enterprises is evaluating a project with the following net cash flows and probabilities:

Year Prob = 0.2 Prob = 0.6 Prob = 0.2

0 (100,000) (100,000) (100,000)

1 20,000 30,000 40,000

2 20,000 30,000 40,000

4 20,000 30,000 40,000

5 30,000 40,000 50,000

b. What are the projects most likely, worst, and best case NPV;s

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