Question
A project has two possible outcomes. The good outcome returns $2,000 next year and occurs 66% of the time. The bad outcome is total failure,
A project has two possible outcomes. The good outcome returns $2,000 next year and occurs 66% of the time. The bad outcome is total failure, returning $0, the rest of the time. If the risk free interest rate is 4.1%, the expected market return is 17.5%, and the project beta is 2, what is the price of the project today?
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Financial Management For Nurse Managers And Executives
Authors: Cheryl Jones, Steven A. Finkler, Christine T. Kovner
4th Edition
1455700886, 9781455700882
