What is the minimum success probability

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Reference no: EM131936991

Question: Assume an investment of $200,000. There are two possible situations for this project:

Success: The annual revenue of $50,000 for 6 years and the salvage value of $100,000 at the end.

Failure: Zero annual revenue and the salvage value of 150,000 at the end of year 2.

What is minimum success probability that project can be economically satisfactory? Assume 10% minimum interest rate of return.

Reference no: EM131936991

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