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Estimated cash flows in the next five years: $700, $600, $500, $400 and $300 Certainty equivalent factors are given as follows: 95%, 80%, 70%, 60%
Estimated cash flows in the next five years: $700, $600, $500, $400 and $300
Certainty equivalent factors are given as follows: 95%, 80%, 70%, 60% and 40%
Initial investment: $1,100
Certainty cash flows: $665, $480, $350, $240 and $120
Risk-free rate: 10%
Cost of capital: 12% (RADR)
NPV@10% = $402.26 > 0 accept this project
can you explain how to get 402.26 show working plz
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