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The Blazingame Corporation is considering a three-year project that has an initial cash outlay (C 0 ) of $175,000 and three cash inflows that are

The Blazingame Corporation is considering a three-year project that has an initial cash outlay (C0) of $175,000 and three cash inflows that are defined by the following independent probability distributions. All dollar figures are in thousands. Blazingame's cost of capital is 6%.

C1 C2 C3 Probability
$50 $40 $75 .25
60 80 80 .50
70 120 85 .25
  1. Estimatetheproject'smostlikelyNPVbyusingapointestimateofeachcashflow.Donotroundintermediatecalculations.Roundtheanswertothenearestwholedollar.Enteryouranswerindollarsandnotinthousandsofdollars.Forexample,ananswerof$1thousandshouldbeenteredas1,000not1.$ Whatistheprobabilityoftheproject'smostlikelyNPV?Donotroundintermediatecalculations.Roundtheanswertothesixdecimalplaces.

b.What is the best possible NPV? Do not round intermediate calculations. Round the answer to the nearest whole dollar. Use a minus sign to indicate a negative NPV. Enter your answer in dollars and not in thousands of dollars. For example, an answer of $1 thousand should be entered as 1,000 not 1. $ What is the worst possible NPV? Do not round intermediate calculations. Round the answer to the nearest whole dollar. Use a minus sign to indicate a negative NPV. Enter your answer in dollars and not in thousands of dollars. For example, an answer of $1 thousand should be entered as 1,000 not 1. $ What is the probability of best possible NPV? Do not round intermediate calculations. Round the answer to the six decimal places. What is the probability of worst possible NPV? Do not round intermediate calculations. Round the answer to the six decimal places.

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