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Information relates to Questions 7 to 10 You have been asked to evaluate a project using the certainty equivalent method. You have been provided with

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Information relates to Questions 7 to 10 You have been asked to evaluate a project using the certainty equivalent method. You have been provided with the following information: Scenario JSE Return Cash Flow Probability 0.272 Fantastic 0.544 8119 Good 0.27 0.157 7645 Mediocre 0.112 0.054 4070 Bad 0.102 -0.048 1134 Horrible 0.243 -0.134 -907 Risk-Free Rate 0.075 52401 Project Cost GDP Growth (Nominal) 0.028 10. The NPV of the project is closest to: a. 22 043.10 b. 23 552.26 c. 46 651.63 d. -5 749.37 Information relates to Questions 7 to 10 You have been asked to evaluate a project using the certainty equivalent method. You have been provided with the following information: Scenario JSE Return Cash Flow Probability 0.272 Fantastic 0.544 8119 Good 0.27 0.157 7645 Mediocre 0.112 0.054 4070 Bad 0.102 -0.048 1134 Horrible 0.243 -0.134 -907 Risk-Free Rate 0.075 52401 Project Cost GDP Growth (Nominal) 0.028 10. The NPV of the project is closest to: a. 22 043.10 b. 23 552.26 c. 46 651.63 d. -5 749.37

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