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QUESTION 5 Assume a two period perfect certainty world. A firm has the following investment opportunities: Project 11 X2 100,000 120,000 B 150,000 162,000 200,000
QUESTION 5 Assume a two period perfect certainty world. A firm has the following investment opportunities: Project 11 X2 100,000 120,000 B 150,000 162,000 200,000 226,000 D 300,000 345,000 The firm has an initial endowment of $500,000 and the market rate of return is 10.00%. If the firm can only invest in one project, the maximum firm value achievable is a. $513,636.36 b. $528,181.82 OC. $545,000.00 d. $500,000.00 e. $509,090.91
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