Question
Consider a project with free cash flows in one year of $137724 or $190092, with each outcome being equally likely. The initial investment required for
Consider a project with free cash flows in one year of $137724 or $190092, with each outcome being equally likely. The initial investment required for the project is $122110, and the projects cost of capital is 20%. The risk-free interest rate is 10%.
What is the NPV of this project?
NOTE: Submit your answers with 4 decimals after the dot. Do not include the "$" sign
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
8th Edition
0357714636, 9780357714638
