Suppose an investment project has an NPV of $75 million if it becomes successful and an NPV

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Suppose an investment project has an NPV of $75 million if it becomes successful and an NPV of 2$25 million if it is a failure. What is the minimum probability of success above which you should make the investment?

a. 1/2

b. 1/3

c. 1/4

d. 1/10

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Managerial Economics

ISBN: 9781337106665

5th Edition

Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward

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