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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
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 A 0.80 RO R50m B Invest 0.60 0.20 -R100m R70m R80m C 0.60 0.40 R80m D End Do not invest 0.40 Cost of capital = 15% 2 0 1
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