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Stage 2 of a decision tree shows that if a project is successful, the payoff will be $53,000 with a 2/3 chance of occurrence. There
Stage 2 of a decision tree shows that if a project is successful, the payoff will be $53,000 with a 2/3 chance of occurrence. There is also the 1/3 chance of a $24,000 payoff. The cost of getting to Stage 2 (1 year out) is $24,000. The cost of capital is 15 percent. What is the NPV of the project at Stage 1
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