Question: The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 $800 Year 1
The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 $800 Year 1 Year 2 Year 3 $200 (5) $200 (5) $400 (.5) $200 (5) $400 (5) $400 (5) $600 (.5) $500 (5) $600 (.5) $700 (5) $600 (5) $800 (5) $800 (5) $1,000 (5) What is the expected NPV for this project if the appropriate cost of capital is 12 percent? Answer in dollars and cents, with no symbols. For example, if you answer is $350.44, enter 350.44
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