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What is the probability of a positive net present value

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Based on history, there is a .60 probability of a positive net present value when competitors do not respond to our introduction of a new product. Based on this same history, if competitors do respond, there is a .30 probability of a positive net present value. After studying history and the financial capabilities of our competitors going forward we determine that there is a .54 probability that competitors will respond. What is the probability of a positive net present value?

Reference no: EM132646824

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