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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 1 Year 2 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 1 Year 2 Year 0 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 cost of capital is 12.48 percent. $374.90 O $269.42 $295.79 O $322.16 O $348.53

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