Question: A project has three possible outcomes. The NPV and probabilities for each outcome are shown below: CASE: NPV: Probability BAD -$4,000 0.20 AVERAGE $500 0.50

A project has three possible outcomes. The NPV and probabilities for each outcome are shown below:

CASE:

NPV:

Probability

BAD

-$4,000

0.20

AVERAGE

$500

0.50

GREAT

$10,000

0.30

What is the expected NPV for this project if our assumptions are correct?

Question 24 options:

$1,050

$2,450

$4,250

$2,167

$600

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