If events are independent, then the joint probability of them occurring together is just the product of the individual probabilities. So P(AC) = 0.25 * 0.40 = 10%. To this, we multiply the probabilities of B and D failing to increase: 10% * (1 - 0.50)*(1 - 0.30) = 3.5%.

There is no effect on the numerator since the cash received from the exercise of the options is not income. The denominator increases by 12,500 based on the treasury method. The method assumes the company would repurchase as many shares as possible with the proceeds from the exercise.
Therefore, 50,000 X $30 = $1,500,000/40 = 37,500. Since they could repurchase 37,500 at the average stock price, there would be 12,500 shares still outstanding.

Price discrimination consists of dividing consumers into groups and charging prices based on willingness or ability to pay.

The probability of success equals the probability that the investment "survives" until the end of the fifth year: Probability of success = 0.90 x 0.75 x 0.70 x 0.90 x 0.90 = 0.3827 Expected payoff =
$ 80,000,000 x 0.3827 = $30,616,000
Discounted payoff = $30,616,000/(1.20)5 = $12,303,884 NPV = $12,303,884 - $20,000,000 = -$7,696,116