Question: QUESTION 7 Consider a project with free cash flows in one year of $116,570 or $188,305, with each outcome being equally likely. The initial investment

QUESTION 7

Consider a project with free cash flows in one year of $116,570 or $188,305, with each outcome being equally likely. The initial investment required for the project is $101,983, and the projects cost of capital is 25%. The risk-free interest rate is 10%. What is the NPV of this project?

NOTE: Submit your answers with 4 decimals after the dot. Do not include the "$" sign

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