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You work as a financial analyst for Athens Development Corporation. The company is considering a new product that is sensitive to the economic conditions as

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You work as a financial analyst for Athens Development Corporation. The company is considering a new product that is sensitive to the economic conditions as well as consumer demand. The capital investment requires an initial outlay of $150.000 to buy a specialized machine to produce the new product. If the demand is good in the first year, the project is expected to bring cash flow of $100,000 with a probability of .6 But if the demand is bad in the first year, the project is expected to bring cash flow of $50,000 with a probability of .4. If the demand is good in the first year, then the project is expected to bring second year cash flow of $120,000 if the demand is good in the second year with a probability of .6 but bring cash flow of $90,000 if the demand is bad in the second year with a probability of 4. If the demand is bad in the first year, then the project is expected to bring secot year cash flow of $50,000. At a 8% of required rate of return, find each possible Net Present Value its associated probability. Should the company make the new investment

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