单项选择题:
An equity investment of $750000 in a private pany will pay $19000000 at the end of five years if the pany is successful. The following is estimates of the probability of failure for each year, given that it survives to the beginning of each year:
Year Probability of Failure
1 0.40
2 0.35
3 0.30
4 0.25
5 0.20
If the pany fails, the payoff is $0 (no money is recovered). If the investor's cost of equity for an investment with similar risk characteristics of this pany is 20 percent, the net present value of the equity investment is closest to:（）
A. $377873 B. $500723 C. $623573
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答案：B
解析: 成功的可能性：(1-0.40)×(1-0.35)×(1-0.30)×(1-0.25)×(1-0.20)=0.1638，由此得股权投资的净现值： 0.1638×[$190000001(1+20%)5-$750000]+(1-0.1638)×(-$750000)=$500723。