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The first cost, life, and annual benefit for a prospective project are uncertain. Optimistic (OP), most...

The first cost, life, and annual benefit for a prospective project are uncertain. Optimistic (OP), most likely (ML), and pessimistic(PS) estimates are given. If the interest rate is 20%, what is the expected NPV?

Parameter Pessimistic Most Likely Optimistic
Fist cost 150000 100000 80000
Annual benefit 25000 45000 50000
Project life 5 7 9
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NVP=48195.5

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