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1)Your team is evaluating two mutually exclusive projects.The initial cost of each investment is $50,000.The probability of the cash flows is shown below. If the
1)Your team is evaluating two mutually exclusive projects.The initial cost of each investment is $50,000.The probability of the cash flows is shown below. If the project will have a 5 year life and the appropriate cost of capital is 9% calculate the following:
Probability- CF(A) CF(B)
10%
(34,000)
(13,500)
25%
(8,500)
2,125
30%
17,000
19,000
25%
42,500
31,875
10%
68,000
46,750
a)Expected value
b)NPV
c)Standard deviation
d)IRR
e)MIRR
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