Suppose that ABC Corp. is considering a project to make a movie ABC Part 2. The company believes that demand is fading for the movie, but there may be interest for one more installment. They have estimated the NPV for three different scenarios with a probability of each occurring. The projections are shown below: SCENARIO: NPV for SCENARIO: Probability of Scenario: -$50.00 million -$5.00 million $60.00 million POOR Sales AVERAGE Sales GREAT Sales 25% 30% 45% What is the expected NPV of the project? $27 million -$1.5 million $1.67 million $13 million D

Suppose that ABC Corp is considering a project to make a movie ABC Part 2. The company believes that demand is fading for the movie, but there may be interest for one more installment. They have estimated the NPV for three different scenarios with a probability of each occurring. The projections are shown below: of Scenario: What is the expected NPV of the project? $27million $1.5 million $1.67 million $13 million