Question: Help solving these with steps 19. A new products chief uncertainty is its annual net revenue. The initial investment in the product is $550,000. The

 Help solving these with steps 19. A new products chief uncertainty

Help solving these with steps

is its annual net revenue. The initial investment in the product is

19. A new products chief uncertainty is its annual net revenue. The initial investment in the product is $550,000. The firms interest rate is 10%. What is the expected PV and standard deviation of the net revenue? Pessimistic Most likely Optimistic Probability 0.35 0.45 0.2 Net revenue $35,000 $50,000 $75,000 Life (in years) 6 8 10 Question 20 is for 50 points 20. Three mutually exclusive projects are being considered. All have a useful life of 8 years. The interest rate is 1%. (Do nothing is not an option) A B C Initial cost 650,000 750,000 450,000 Uniform annual benefit 275,000 355,000 200,000 Which project should be selected based on a. Payback period b. Discounted payback period c. Benefit/cost ratio d. NPV analysis e. IRR

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