When deducing the expected NPV of a project, you can: (a) identify all possible outcomes (and their

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When deducing the expected NPV of a project, you can:

(a) identify all possible outcomes (and their individual NPVs) and deduce the expected NPV from them; or

(b) deduce the expected value of each of the inputs and use these to deduce the expected NPV directly.

What are the advantages and disadvantages of each of these two approaches?

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Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

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Question Posted: Mar 05, 2024 07:00 AM

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When deducing the expected NPV of a project, you can: (a) identify all possible outcomes (and their

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