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The purchase of a machine whose cost is $ 10,000 and that has a useful life of 5 years will generate annual cash flows according
The purchase of a machine whose cost is $ 10,000 and that has a useful life of 5 years will generate annual cash flows according to 3 scenarios and which are presented as follows: Scenario 1: flows of $ 2,000 and probability of 30%. Scenario 2: flows of $ 5,000 and probability of 20%. Scenario 3: flows of $ 3,000 and probability of 50%. Calculate the expected net present value considering that the company's cost of capital is 10%.
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