What is the expected net present value

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Question - A company is considering a long term investment that requires a $45,000 investment today, and then in 4 years promises a payout of $55,500 with prob. 0.4 and a payout of $66,000 with prob. 0.6.  If the opportunity cost of capital for the company is 8%, what is the expected net present value?

Reference no: EM133136179

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