You've inherited $125,000 and you want to use the money to buy a Subway franchise. You estimate that if things go well you can earn $65,000 a year. However, if things go bad you will only earn $35,000 a year. With hard work you expect there is a 75% chance things will go well and a 25% chance that things will go bad. Time horizon is 5 years @ 2% interest. Sketch the decision tree and calculate the NPV after probabilities. Optimistic = $136,031 Pessimistic = 59,993 rue View Help answer is already provided just needed the solution. answers are Optimistic $136.031 Pessimistic $9,993