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It will cost $65,000 to implement the project, all of which must be invested at the beginn

It will cost $65,000 to implement the project, all of which must be invested at the beginning of the project. After the fourth year, the project will have no residual value.assume that the cash flow estimates for each year are best represented by a triangular distribution and that the hurdle rate is 20 percent.

(a) Use Crystal Ball® to fi nd the expected NPV of the project.

(b) What is the probability that the project will yield a return greater than the 20 percent hurdle rate?

A four-year financial project has estimates of net cash flows shown in the following table: Year Pessimistic Most Likely Optimistic $14,000 19,000 27,000 32,000 $20,000 25,000 30,000 35,000 $22,000 30,000 36,000 39,000 4

Dec 04 2019 View more View Less

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