Question: Assume an investment of $200,000. There are two possible situations for this project:
Success: The annual revenue of $50,000 for 6 years and the salvage value of $100,000 at the end.
Failure: Zero annual revenue and the salvage value of 150,000 at the end of year 2.
What is minimum success probability that project can be economically satisfactory? Assume 10% minimum interest rate of return.