annual revenue is 50 000$ at probability 30% 100 000 at probability 50% and 125 000 $ at 20% . the life of project is 2 year at probability 20%, 3 year at 20% 4 year at 50% ,5 year at 10%, find expected present worth if i=9 % per year.

annual revenue is 50 000$ at probability 30% 100 000 at probability 50% and 125 000 $ at 20% . the life of project is 2 year at probability 20%, 3 year at 20% 4 year at 50% ,5 year at 10%, find expected present worth if i=9 % per year.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 15PROB

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(Ex) The initial investment cost for project A is 200 000 $ at probability 100%. the
annual revenue is 50 000$ at probability 30% , 100 000 at probability 50% and
125 000 $ at 20%
the life of project is 2 year at probability 20%, 3 year at 20%
4 year at 50% ,5 year at 10%, find expected present worth if i=9 % per year.

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