A project has three possible outcomes. The NPV and probabilities for each outcome are shown below:
CASE:
NPV:
Probability
BAD
-$4,000
0.20
AVERAGE
$500
0.50
GREAT
$10,000
0.30
What is the expected NPV for this project if our assumptions are correct?
Question 24 options:
$1,050
$2,450
$4,250
$2,167
$600
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