Question: A two-period project has the following probabilities and cash flows: The discount rate is 7%, and the initial investment is $1,000. How much is the

A two-period project has the following probabilities and cash flows:

The discount rate is 7%, and the initial investment is $1,000.


A two-period project has the following probabilities and cash flows: The


How much is the expected NPV of thisproject? 

Period 1 Probabilitv 0.033 0.900 0.067 Cash flows 5 400.00 500.00 700.00 Period 2 Probabilit 0.050 0.050 0.900 Cash flows 300.00 500.00 700.00

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