Question: i just need D. to be answer (Calculating the expected NPV of a project) Management at the Physicians' Bone and Joint (PB&J) Clinic is considering

(Calculating the expected NPV of a project) Management at the Physicians' Bone and Joint (PB&J) Clinic is considering whether to purchase a newly developed MRI machine that the manufacturer tells them will provide the basis for better diagnoses of foot and knee problems. The new machine is quite expensive but should last for a number of years. The clinic's CFO asked an analyst to work up estimates of the NPV of the investment under three different assumptions about the level of demand for its use (high, medium, and low). To carry out the analysis, the CFO assigned a 55 percent probability to the medium-demand state, a 31 percent probability to the high-demand state, and the remaining 14 percent to the low-demand state. After forecasting the demand for the machine based on the CFO's judgment and past utilization rates for MRI scans, the analyst made the following NPV estimates: . you interpret the meaning of the Data Table he maximum probability you can assign probabilities assigned to all three states Demand State Low Medium High Probability of State 14% 55% 31% NPV Estimate $(310,000) $194,000 $395,000 ected value is good, since there is a ected value is bad, since the (Click on the icon in order to copy its contents into a spreadsheet.) ected value is bad, since there is a(n) Print Done ected value is good, but there is a(n) 14% probability of the NPV being negative. b. Assuming that the probability of the medium demand state remains 55%, the maximum probability you can assign to the low-demand state and still have an expected NPV of 0 or higher is %. (Round to one decimal place.)
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