Question
Merton Clinic managers are analyzing a new project. The projects most likely NPV is $120,000. The project cost of capital (discount rate) is 10 percent.
Merton Clinic managers are analyzing a new project. The projects most likely NPV is $120,000. The project cost of capital (discount rate) is 10 percent.
Probability NPV
0.05 ($800,000)
0.25 200,000
0.50 400,000
0.20 600,000
What is the projects standard deviation?
a. -$300,000
b. $300,485
c. *$291,719
d. $281,593
e. $300,000
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International Finance Theory And Policy
Authors: Paul Krugman, Maurice Obstfeld, Marc Melitz
12th Global Edition
1292417005, 978-1292417004
