We are examining a new project. If it is a success, the project will generate $600,000 NPV. If it is a failure, the project will generate -$500,000 NPV. The size of the project can increased by twice of its original size in year 1 if the project turns out to be a success. Assume that success and failure are equally likely and a discount rate of 12%. What is the expected NPV of the project? O $1,800,000 O $585,714 O $650,000 O $600,000 O $50,000
