Question: You are considering a project which requires 500 dollars in year zero of initial investment. The project has 75% chance of being successful. If it

You are considering a project which requires 500 dollars in year zero of initial investment. The project has 75% chance of being successful. If it is successful, the project yields a cash flow of 500 dollars in perpetuity from year 1 onwards, and if unsuccessful, it yields a cash flow of -200 dollars in perpetuity. Assuming a discount rate of 14%, should you undertake the project? Compute the NVP

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