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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 o Year 1 Year

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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 o Year 1 Year 2 Year 3 $200 (.5) $300 (5) $400 (5) $400 (4) $400 (5) $500 (5) $600 (-5) -$800 $300 (.5) $400 (5) $500 (5) $500 (6) $500 (.5) $600 (-5) $700 (.5) Given this data, determine the expected NPV for this project if the appropriate of capital is 12.36 percent. $233.93 $212.56

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