your project manager has forecast savings from a proposed investment to most likely be $10M a year for the next 10 years. however he believes that there is a 10% chance that it will be $12M and a 10% that it will be $8M. you run the number's and discover

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your project manager has forecast savings from a proposed investment to most likely be $10M a year for the next 10 years. however he believes that there is a 10% chance that it will be $12M and a 10% that it will be $8M. you run the number's and discover

your project manager has forecast savings from a proposed investment to most likely be $10M a year for the next 10 years. however he believes that there is a 10% chance that it will be $12M and a 10% that it will be $8M. you run the number's and discover that the NPV on the project is negative using an $8M number for savings. you present your analysis to your colleagues and receive the following 3 opinions. which opinion correct?

college finance Multiple-Choice

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Answer #1

the weighted average of the NPV's for the 3 cases is positive, hence we should accept the project.

answered by: Andrew San Andres

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your project manager has forecast savings from a proposed investment to most likely be $10M a year for the next 10 years. however he believes that there is a 10% chance that it will be $12M and a 10% that it will be $8M. you run the number's and discover

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your project manager has forecast savings from a proposed investment to most likely be $10M a year for the next 10 years. however he believes that there is a 10% chance that it will be $12M and a 10% that it will be $8M. you run the number's and discover

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How can we assess whether a project is a success or a failure? This case presents...

your project manager has forecast savings from a proposed investment to most likely be $10M a year for the next 10 years. however he believes that there is a 10% chance that it will be $12M and a 10% that it will be $8M. you run the number's and discover

Homework Answers

Add Answer to: your project manager has forecast savings from a proposed investment to most likely be $10M a year for the next 10 years. however he believes that there is a 10% chance that it will be $12M and a 10% that it will be $8M. you run the number's and discover

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How can we assess whether a project is a success or a failure? This case presents...

Add Answer to:
your project manager has forecast savings from a proposed investment to most likely be $10M a year for the next 10 years. however he believes that there is a 10% chance that it will be $12M and a 10% that it will be $8M. you run the number's and discover