Determine the expected net present value of the investment

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Question: Assume $100,000 outlay for an investment with two possible payoffs: $100,000

.04 Probability $50,000

0.6 Probability $200,000

(a) Determine the expected net present value of the investment.

(b) What is the NPV of the worst event and what is the probability of it to occur?

Reference no: EM131935725

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