AN INVESTOR CONTRIBUTES ￡2,500,000 TO A NEW VENTURE CAPITAL PROJ...

51. An investor contributes ￡2,500,000 to a new venture capital project that is expected to earn ￡7,500,000 at the end of year 5 if it is successful. The probabilities of failure for the project are provided in the table below: Year: 1 2 3 4 5 Failure Probability: 0.35 0.20 0.15 0.15 0.15 If the cost of capital for the JV is 12%, the project’s expected NPV is closest to: A．-£560,674. B．-£1,140,964. C．-£1,701,638.