Question: Using the data from Example 6.1, let us assume that all the factors are known with certainty (impossible in real life) except sales volume. Extensive

Using the data from Example 6.1, let us assume that all the factors are known with certainty

(impossible in real life) except sales volume.

Extensive market research suggests that annual demand will be:

l 4000 units (0.2 probable), or l 4500 units (0.5 probable), or l 5000 units (0.3 probable).

What are the possible outcomes (in terms of NPV ) and how probable is each one?

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