A project's possible outcomes are summarized as follows. $\begin{array}{lll}
& \text { NPV } & \text { Probability } \
\text { Worst case } & (\$ 1,000) & .2 \
\text { Most likely case } & \$ 300 & 3 \
\text { Rest case. } & \$ 600 & 5
\end{array}$ The expected NPV for the project is approximately:

Question

Quizplus · Accepted Answer

The expected NPV is calculated as the sum of the products of each possible NPV and its probability. Therefore, the expected NPV is:$$(0.2) 	imes (-1,000) + (0.3) 	imes 300 + (0.5) 	imes 600 = -200 + 90 + 300 = 190$$

A Project's Possible Outcomes Are Summarized as Follows The Expected NPV for the Project Is Approximately: A) $190

A Project's Possible Outcomes Are Summarized as Follows The Expected NPV for the Project Is Approximately:
A) $190