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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 ( 1 2 5
Granby Dialysis is considering an expansion project with the projected cash flows
Year Worst Case Most Likely Case Best Case
Granby Dialysis has a percent corporate cost of capital. The probabilities of seeing the worst case, most likely case, and best case are and respectively.
a What is the projects NPV IRR, and payback for each case?
b What is the projects expected NPV
c What is the projects standard deviation of NPV
d What is the projects coefficient of variation CV
e Describe how you could adjust this project based on its risk classification? ie if it was above average risk or if it was below average risk
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