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7) [4 Points Total] A project has the following cash flows, and the certainty equivalent cash flow for year 1: CF CEQ t 0 1

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7) [4 Points Total] A project has the following cash flows, and the certainty equivalent cash flow for year 1: CF CEQ t 0 1 2. - 100.00 80.00 90.00 74.18 The risk free rate is 2%. Answer the following questions: a) [2 Points] Calculate the risk adjusted discount rate for this project. b) [1 Points] Calculate the certainty equivalent cash flow for year 2. c) [1 Point] Calculate the net present value of this project

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