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?
    A ₹15L Correct Answer Incorrect Answer
    B ₹13.33L Correct Answer Incorrect Answer
    C ₹12L Correct Answer Incorrect Answer
    D ₹10L Correct Answer Incorrect Answer

    Solution

    Expected NPV = (1/3 × ₹20L) + (1/3 × ₹15L) + (1/3 × ₹10L) = ₹15L

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