Question
A project has three outcomes: best case ₹20L, base
case ₹15L, worst case ₹10L. If the probability of each is 1/3, what is the expected NPV?Solution
Expected NPV = (1/3 × ₹20L) + (1/3 × ₹15L) + (1/3 × ₹10L) = ₹15L
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