population as follows, but you can’t distinguish among
them:
Employee Value
Probability
$50,000
0.25
$60,000
0.25
$70,000
0.25
$80,000
0.25
What is the expected value of five employees you hire?
Salvatore's Chapter 15:
a) Discussion Questions: 7.
b) Problems: 8, 10, and spreadsheet problem 1.
Discussion Question 7:
a) When can the NPV and the IRR methods of evaluating
investment projects provide contradictory results?
b) How can this arise?
c) Which method should then be used? Why?