What is the expected cash inflow

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Reference no: EM131952821

The price of a unit to be manufactured can follow one of three potential paths with equal probability

Path Period 0 Period 1 Period 2

A $35.00 $40.00 $45.00

B $35.00 $40.00 $40.00

C $35.00 $35.00 $35.00

D $35.00 $30.00 $25.00

What is the NPV of a project that will allow the firm to manufacture 200 units each year for periods 1 and 2, assuming a cost of $12,800.00 and a discount rate of 10%? What is the expected cash inflow?

Reference no: EM131952821

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