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Granby Dialysis is considering an expansion project with the projected cash flows. Granby Dialysis has a 11.5 percent corporate cost of capital. What is the

Granby Dialysis is considering an expansion project with the projected cash flows. Granby Dialysis has a 11.5 percent corporate cost of capital.

  1. What is the projects NPV, IRR, and payback for each case?
  2. What is the projects expected NPV?
  3. What is the projects standard deviation of NPV?
  4. What is the projects coefficient of variation (CV)?
  5. Describe how you could adjust this project based on its risk classification? (i.e. if it was above average risk or if it was below average risk)

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Granby Dialysis is considering an expansion project with the projected cash flows Year Worst Case Most Likely Case Best Case 0 (125,000) (100,000) (91,350) 1 22,000 34,500 43,000 2 24,000 29,750 43,500 3 26,500 33,600 44,250 4 27,300 38,000 46,000 48,250 5 29,750 43,650 Granby Dialysis has a 11.5 percent corporate cost of capital. d) What is the projects NPV, IRR, and payback for each case? e) What is the projects expected NPV? f) What is the projects standard deviation of NPV? g) What is the projects coefficient of variation (CV)? h) Describe how you could adjust this project based on its risk classification? (i.e. if it was above average risk or if it was below average risk)

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