Risk-Adjusted NPV The brand manager also presents a third scenario, where due to a new entrant in the market, the company has to spend more on marketing activities. Hence, it would require a larger marketing budget. Here, the brand manager assumes that the cash inflows remain the same as per the regular scenario; however, the cash outflows would be revised as given in the following table. The following probabilities are assigned to each scenario: - Regular launch and success (best case): 60% - Failure in year 2 (worst case): 20% - Success following a larger expenditure on marketing due to a new entrant (base case): 20% Calculate the risk-adjusted NPV for the project. (You can use the NPVs of the first two scenarios as calculated in the previous questions.) Choose the closest option. $10.20 million $4.71 million \$-5.46 million $3.35 million