Question: The project defined by the following decision tree has a required discount rate of 14 %. (3 pts) 1. t-0 Cash Flow After Tax Invest
The project defined by the following decision tree has a required discount rate of 14 %. (3 pts) 1. t-0 Cash Flow After Tax Invest $100,000.000 Success Years 2-5 $66,000,000 year Test Cost Do Not Invest NPV = $ 0 $20,000,000 Failure NPV = $.20.000.000 Do not test What is the Time 1 net present value of a successful investment
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