Economists at Rudy Investments estimate a 20% probability of a recession next year, a 50% probability of an average economy, and a 30% probability of a rapid expansion.If there is a recession, the NPV of project O will be $20 million; if the economy is average, it will be $45 million and in case of a rapid expansion, it will be $75 million.What is the expected NPV of the project?
A)$57.5 million
B)$49 million
C)$46.67 million
D)$45 million

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The Answer of Economists at Rudy Investments estimate a 20% probability of a recession next year, a 50% probability of an average economy, and a 30% probability of a rapid expansion.If there is a recession, the NPV of project O will be $20 million; if the economy is average, it will be $45 million and in case of a rapid expansion, it will be $75 million.What is the expected NPV of the project?
A)$57.5 million
B)$49 million
C)$46.67 million
D)$45 million

Economists at Rudy Investments Estimate a 20% Probability of a Recession