What is the expected npv of the product

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Reference no: EM131047191

Your software development company is considering investing in a new product. If it is very well received by users (30% probability), you expect an NPV of $500,000; if users are mildly happy with the product (50% probability), you expect an NPV of $400,000; and if users are not that excited by the product (20% probability), you expect an NPV of $300,000. What is the expected NPV of the product?

a. $390,000

b. $400,000

c. $410,000

d. None of the above

Reference no: EM131047191

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