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Question 5 [5 Marks) What is the expected NPV of the following decision tree? The net flow and associated probability is shown above and below

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Question 5 [5 Marks) What is the expected NPV of the following decision tree? The net flow and associated probability is shown above and below each branch for the two year project. R50m 0.80 A RO R50m Invest 0.60 0.20 -R100m R70m R80m 0.40 0.60 R80m End Do not invest 0.40 Cost of capital = 15% 0 N

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