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URGENT, please help!! consider a projecg that has an initial investment cost of $1.5million, and in one year, will generate $2million if things go well(
URGENT, please help!!
consider a projecg that has an initial investment cost of $1.5million, and in one year, will generate $2million if things go well( good scenario), and $800000 if things don't go well (bad scenario). assume the probability of the good scenario is 60% and that of the bad scenario is 40%. the discount rate is 10 percent
a. what is the NPV of the project. ( 3 marks)
b. how much would the project have to generate in the bad scenario for the project to be acceptable?
i sent you question by typing manually, still it is not visible!!!!!!
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