Problem 9 21 Certainty equivalents A project has a forecasted cash flow of $124 in year 1 and $135 in year 2 The interest rate is 7 , the estimated risk premium on the market is 11 , and the project has a beta of 0 64 If you use a constant risk adjusted discount rate, answer the following a What is the PV of the project b What is the certainty equivalent cash flow in year 1 and year 2 c What is the ratio of the certainty equivalent cash flows to the expected cash Complete this question by entering your answers in the tabs below What is the PV of the project Note Do not round intermediate calculations Round your answer to 2 decimal places Problem 9 21 Certainty equivalents A project has a forecasted cash flow of $124 in year 1 and $135 in year 2 The interest rate is 7 , the estimated risk premium on the market is 11 , and the project has a beta of 0 64 If you use a constant risk adjusted discount rate, answer the following a What is the PV of the project b What is the certainty equivalent cash flow in year 1 and year 2 c What is the ratio of the certainty equivalent cash flows to the expected cash Complete this question by entering your answers in the tabs below What is the certainty equivalent cash flow in year 1 and year 2 Note Do not round intermedlate calculations Round your answers to 2 decimal places Problem 9 21 Certainty equivalents A project has a forecasted cash flow of $124 in year 1 and $135 in year 2 The interest rate is 7 , the estimated risk premium on the market is 11 , and the project has a beta of 0 64 If you use a constant risk adjusted discount rate, answer the following a What is the PV of the project b What is the certainty equivalent cash flow in year 1 and year 2 c What is the ratio of the certainty equivalent cash flows to the expected cash Complete this question by entering your answers in the tabs below What is the ratio of the certainty equivalent cash flows to the expected cash Note Do not round intermediate calculations Round your answers to 2 decimal places

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Problem 9 21 Certainty equivalents A project has a forecasted cash flow of $124 in year 1 and $135 in year 2   The interest rate is 7 , the estimated risk premium on the market is 11 , and the project has a beta of 0 64   If you use a constant risk adjusted discount rate, answer the following  a  What is the PV of the project  b  What is the certainty equivalent cash flow in year 1 and year 2   c  What is the ratio of the certainty equivalent cash flows to the expected cash  Complete this question by entering your answers in the tabs below  What is the PV of the project  Note  Do not round intermediate calculations  Round your answer to 2 decimal places  Problem 9 21 Certainty equivalents A project has a forecasted cash flow of $124 in year 1 and $135 in year 2   The interest rate is 7 , the estimated risk premium on the market is 11 , and the project has a beta of 0 64   If you use a constant risk adjusted discount rate, answer the following  a  What is the PV of the project  b  What is the certainty equivalent cash flow in year 1 and year 2   c  What is the ratio of the certainty equivalent cash flows to the expected cash  Complete this question by entering your answers in the tabs below  What is the certainty equivalent cash flow in year 1 and year 2   Note  Do not round intermedlate calculations  Round your answers to 2 decimal places  Problem 9 21 Certainty equivalents A project has a forecasted cash flow of $124 in year 1 and $135 in year 2   The interest rate is 7 , the estimated risk premium on the market is 11 , and the project has a beta of 0 64   If you use a constant risk adjusted discount rate, answer the following  a  What is the PV of the project  b  What is the certainty equivalent cash flow in year 1 and year 2   c  What is the ratio of the certainty equivalent cash flows to the expected cash  Complete this question by entering your answers in the tabs below  What is the ratio of the certainty equivalent cash flows to the expected cash  Note  Do not round intermediate calculations  Round your answers to 2 decimal places

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Problem 9-21 Certainty equivalents A project has a forecasted cash flow of $124 in year 1 and $135 in year 2 . The interest rate

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