Question: Complete the decision tree table by calculating the net present values (NPVS) and joint probabilities, as well as products of joint probabilities and NPVs for
Complete the decision tree table by calculating the net present values (NPVS) and joint probabilities, as well as products of joint probabilities and NPVs for each decision branch. Assume that the weighted average cost of capital (WACC) is 8% for all decision branches. Hint: Use either spreadsheet program's functions or a financial calculator for this task. Round the NPVs to the nearest dollar and remember to enter the minus sign if a value is negative. Note: All cash amounts in the following table are in thousands of dollars. Step 0 Step 1 Step 2 Step 3 Step 4 Step 5 Joint Prob 2nd Invest NPV ($) 1st Invest Prob Prob NPV x Joint Prob (5) 5,373 14,328 37.50 75% -$300 (2) 50% (2) 20% (2) 30% 3rd Invest -$10.269 -$10,000 Stop $0 Inflow (3) $4,761 (3) $1,900 (3) $0 $0 $8,237 $2,345 $0 $0 $20,065 $7,800 $0 $0 (1) -$80 25% Stop Expected NPV- Based on your calculations, in case Green Moose Industries abandons the new project right after the marketing study, the loss is
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