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Le Donne Corporation (LDC) is considering the following mutually exclusive investment project. The initial investment for project M is $28,800 and that for project N

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Le Donne Corporation (LDC) is considering the following mutually exclusive investment project. The initial investment for project M is $28,800 and that for project N is $32,500. The life of both projects is 10 years. The probability distribution of the cash flows of the projects is given as follows. LDC uses a WACC of 14.75% for less risky projects and 16.75 for riskier project. Probability 10% 80% 10% Project M Cash Flow $12,000 10,000 10,000 Probability 20% 30% 30% 20% Project N Cash Flow $16,650 8,508 19,100 12,000 You must show all your calculations(work) step by step. a) Calculate standard deviation (SD) and the coefficient of variation (CV) for each project? Please show all your work(calculations) step by step and make a comment as which project is riskier and why? a. SD project M: b) Calculate risk adjusted NPV for each project. Please show all your work(calculations) step by step and explain your approach in writing. c) What project do you advise LDC to select? Please make a comment on your results in 4 lines

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