A risky $ 2 5 , 0 0 0 investment is expected to generate the following cash

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Question:

A risky $

25, 000

investment is expected to generate the following cash flows:

Year

1 2 3

13, 125

15, 000

17, 500

The probability of receiving each cash inflow is

80, 70,

and

60

percent, respectively. If the firm

s cost of capital is

6

percent, should the investment be made? Use Appendix D to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

NPV: $

Posted Date: May 18, 2024 07:15 PM

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A risky $ 2 5 , 0 0 0 investment is expected to generate the following cash

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