What is the expected pw for deciding whether to proceed

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Reference no: EM131809635

A new product's chief uncertainty is its annual net revenue. So far, $35,000 has been spent on development, but an additional $30,000 is required to finish development. The firm's interest rate is 10%.

(a) What is the expected PW for deciding whether to proceed?

(b) Find the P(loss) and the standard deviation for proceeding.

1166_standard deviation for proceeding.png

Reference no: EM131809635

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