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A project requires an immediate outflow of cash of R400.000 in return for the following probable cash flows: Assume that the state of the economy
A project requires an immediate outflow of cash of R400.000 in return for the following probable cash flows: Assume that the state of the economy will be the same in the second year as in the first. The required rate of return is 8 per cent. There is no tax or inflation. Required: Calculate the expected NPV. Calculate the standard deviation of NPV and the coefficient of variance of the NPV. Interpret these results taking into consideration of the state of economy
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