The project defined by the following decision tree has a required discount rate of 14 percent.

What is the Time 1 net present value of a successful investment?

Multiple Choice options

• $122,008,054

• $126,583,344

• $87,342,087

• $92,305,012

• $89,406,415

t=0 Cash Flow After Tax t=1 Invest $100.000.000 Success Year's 2-5 $66.000.000/year Test Cost Do Not Invest NPV=$0 $20,000,000 Failure NPV = $-20,000,000 Do not test t=0 Cash Flow After Tax t=1 Invest $100.000.000 Success Year's 2-5 $66.000.000/year Test Cost Do Not Invest NPV=$0 $20,000,000 Failure NPV = $-20,000,000 Do not test