World Navigation Systems Ltd designs and manufactures specialist navigation equipment. A typical product has a commercial life of three years. Analysis of demand for 1000 various navigation systems found that 325 enjoyed high demand throughout their commercial lives, 480 moderate demand and 195 low demand. The NPV of a new project for various demand predictions were calculated as follows: High Demand Moderate Demand Low Demand 41,936 173 (1,336) Using probabilities derived from the past demand data the expected NPV of the new project is equal to: A. 41,936 B. 173 C. -1,336 D. 13452
World Navigation Systems Ltd designs and manufactures specialist navigation equipment. A typical product has a commercial life of three years. Analysis of demand for 1000 various navigation systems found that 325 enjoyed high demand throughout their commercial lives, 480 moderate demand and 195 low demand. The NPV of a new project for various demand predictions were calculated as follows: High Demand Moderate Demand Low Demand 41,936 173 (1,336) Using probabilities derived from the past demand data the expected NPV of the new project is equal to: A. 41,936 B. 173 C. -1,336 D. 13452
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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World Navigation Systems Ltd designs and manufactures specialist navigation equipment.
A typical product has a commercial life of three years. Analysis of demand for 1000 various navigation systems found that 325 enjoyed high demand throughout their commercial lives, 480 moderate demand and 195 low demand.
The NPV of a new project for various demand predictions were calculated as follows:
High Demand Moderate Demand Low Demand
|
41,936 |
173 |
(1,336) |
Using probabilities derived from the past demand data the expected NPV of the new project is equal to:
| A. |
|
||||
| B. |
173 |
||||
| C. |
-1,336 |
||||
| D. |
13452 |
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