Assume a project costs Sh 30,000 and yields the following uncertain cashflows: Year Cashflow 1 12,000 2
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Question:
Assume a project costs Sh 30,000 and yields the following uncertain cashflows:
Year Cashflow
1 12,000
2 14,000
3 10,000
4 6,000
Assume also that the certainty equivalent coefficients have been estimated as follows:
0 = 1.00
1 = 0.90
2 = 0.70
3 = 0.50
4 = 0.30
The risk-free discount rate is given as 10%
Required
Compute the NPV of the project
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