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Granby Dialysis is considering an expansion project with the projected cash flows Granby Dialysis has a 1 1 . 5 percent corporate cost of capital.

Granby Dialysis is considering an expansion project with the projected cash flows
Granby Dialysis has a 11.5 percent corporate cost of capital. The probabilities of seeing
the worst case, most likely case, and best case are 25%,50% and 25% respectively.
a) What is the projects NPV, IRR, and payback for each case? (10)
b) What is the projects expected NPV?(5)
c) What is the projects standard deviation of NPV?(5)
d) What is the projects coefficient of variation (CV)?(5)
e) 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)(5)
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