Question: 00 Murphy Systems is considering a project for new type of handheld device that provides wireless intemet connections. The cost of project is $ 50

 00 Murphy Systems is considering a project for new type of

00 Murphy Systems is considering a project for new type of handheld device that provides wireless intemet connections. The cost of project is $ 50 million, but the future cash flows depend on the demand for wireless intemet connections which is uncerta Murphy believes that there is -25% chance that demand for the new device will be very high, in which the project will generate CF of $ 33 million each year for 3 years -50% chance of average demand, with C F of $ 25 million per year, -25% chance with low demand, with C.F. of $ 5 million per year. Calculate the NPV of the project if the required rate of return is 14% (Hint calculate the NPV under each screens the NVP of each scenario by its respective probability to end up with tolal projects NPV)

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