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Your firm is considering investment in a new project. If the economy is strong (30% probability), you expect an NPV of $500,000; if the economy is normal (50% probability), you expect an NPV of $400,000; and if the economy is weak (20% probability), you expect an NPV of $300,000. What is expected NPV of the project?
a. $390,000
b. $400,000
c. $410,000
d. None of the above
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