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No one has gotten any % of this correct. Please help me figure out my second to last problem. tage 1 is not successful, the
No one has gotten any % of this correct. Please help me figure out my second to last problem.
tage 1 is not successful, the project will be abandoned with zero salvage value. rototypes could be sold for $100,000. The managers estimate that the probability is 80% that the boats will pass testing and that Stage 3 will be undertaken. ne net value would be $1.5 million. Both net values occur at t=3, and each state of the economy has a probability of 0.5 . YYC's corporate cost of capital is 11%. should be entered as 2,000,000. Round your answer to the nearest cent. $ be entered as 2,000,000. Round the project's standard deviation to the nearest cent and CV to two decimal places. NPV:$ CVNPV If YYC's average project had a CV of between 1.0 and 2.0, would this project be of high, low, or average stand-alone risk? This project is of riskStep by Step Solution
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