Please help with question "2" using the already completed answer to question "1."

1. Athens Development Corporation is considering a new product that will be sensitive to both economic conditions and competitor response.The product manager has decided to focus on three economic conditions: weak economy, normal economy, and strong economy.Competitors either will or will not respond with a competitive product, and competitor response is unlikely unless economic conditions turn out to be strong.Annual cash flows for each of these conditions appear below.The product has a five-year life and will require an initial cash outlay of $432,000.The cost of capital is 7.5 percent.Should Athens invest in this product?

CompetitorWeakNormalStrong

ResponseEconomyEconomyEconomy

Yes$36,500$62,000$93,000

No$48,50091,000124,000

Please complete the table of net present values below:

CompetitorWeakNormalStrong

ResponseEconomyEconomyEconomy

Yes($284,325)($181,155)($55,733)

No($235,775)($63,824)$69,690

2.As a follow on to the prior problem, assume that the investment committee determined the probabilities below:

Probability the competitor will response 30%, will not respond 70%

Probability of each economic state over the six year horizonWeak - 15%., Normal - 60% and Strong 25%

Please complete the table of joint probabilities (by multiplying the economy probability by the competitor response probability) below and then calculate the expected net present value.

CompetitorWeakNormalStrong

ResponseEconomyEconomyEconomy

Yes______%______%______%

No______%______%______%

The expected net present value is ________________.