A portfolio manager is analyzing a $200000

问题单项选择题

A portfolio manager is analyzing a $2000000 venture capital investment. If the project succeeds until the end of the sixth year, the net present value (NPV) of the project is $ 6587000. The project has a 32. 69 percent probability of surviving to the end of the sixth year. The expected NPV of the project is:（）

A. $ 6587000.

B. $ 4587000.

C. $ 807090.

答案

参考答案：C

解析：

The project’s expected NPV is a probability-weighted average of the two possible outcomes: $ 6587000 if it is successful or the loss of the initial $2000000 investment if it fails. The expected NPV for the project is: 0.3269×6587000+0.6731×(-$2000000)=$807090.