Question: The project defined by the following decision tree has a required discount rate of 15 percent. What is the Time 1 net present value of

The project defined by the following decision tree has a required discount rate of 15 percent. What is the Time 1 net present value of a successful investment?

$87,342,087

$122,008,054

$88,428,572

$112,997,143

$211,046,198

t=0 Cash Flow After Tay Invest $100,000.000 Success Years 2-5 $66,000,000 year .6 Test Cost Do Not Invest NPV = $ 0 $20,000,000 Failure NPV-S-20,000,000 Do not test

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