The project defined by the following decision tree has a required discount rate of 17 percent. t=0 Test Cost $20,000,000 Do not test Success Failure t=1 Invest $100,000,000 Cash Flow After Tax What is the Time 0 net present value of a successful test and investment? Years 2-5 $66,000,000/year Do Not Invest NPV=$0 NPV=$-20,000,000

The project defined by the following decision tree has a required discount rate of 17 percent. What is the Time 0 net present value of a successful test and investment