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Hi I need help with the following question, hoping you can help-(Answered)

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Hi I need help with the following question, hoping you can help

Initial investment is $1,500. NPC has the opportunity to invest in a project that has a 75% chance of generating $500 per year for 7-years under good conditions or a 25% chance of generating $25 per year for 7-years. Assuming that all cash flows are discounted at 10%, if NPC chooses to wait a year before proceeding, how much will this increase or decrease the project's expected NPV in today's dollars (i.e., at t = 0), relative to the NPV if it proceeds today?

 

Paper#9209564 | Written in 27-Jul-2016

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