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The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 -700 Year
The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 -700 Year 1 Year 2 Year 3 200 (0.5) 200 (0.5) 400 (0.5) 200 (0.4) 400 (0.5) 400 (0.5) 600 (0.5) 600 (0.5) 600 (0.5) 800 (0.5) 600 (0.6) 800 (0.5) 800 (0.5) 1000 (0.5) What is the expected NPV for this project if the appropriate cost of capital is 9.5 percent?
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
