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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
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?
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 =S-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 =S-20.000.000 Do not testStep by Step Solution
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