Probability of positive net present value

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Reference no: EM131567501

Based on history, there is an .60 probability of a positive net present value when competitors do not respond to our introduction of a new product. Based on this same history, if competitors do respond, there is a .20 probability of a positive net present value. After studying history, and the financial capabilities of our competitors going forward, we determine that there is a .50 probability that competitors will respond. The total probability of a positive net present value is ______.

Reference no: EM131567501

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