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.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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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