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AGMA Inc. is planning on investing in a new production line. Estimates for the capital costs of the line are
- Low: $320,000 10% likelihood
- Nominal: $580,000 65% likelihood
- High: $900,000 25% likelihood
Estimates for the net sales revenues are
- Low: $155,000 per year 15% likelihood
- Nominal: $260,000 per year 70% likelihood
- High: $340,000 per year 15% likelihood
Assume the line will run for six years, and you have an MARR of 15%. Determine the overall expected NPV for this project.
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