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Problem 1 3 - 1 4 ( Algo ) Risk - adjusted discount rate [ LO 1 3 - 3 ] Dixie Dynamite Company is
Problem Algo Riskadjusted discount rate LO
Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial purposes over the next five years. Method one implosion is relatively low in risk for this business and will carry a percent discount rate. Method two explosion is less expensive to perform but more dangerous and will call for a higher discount rate of percent. Either method will require an initial capital outlay of $ The inflows from projected business over the next five years are shown next.
tableYearsMethod Method $$
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