Question
Suppose you have a project that has two possible outcomes in one year. In the successful state, the project pays off $1200 and this state
Suppose you have a project that has two possible outcomes in one year. In the successful state, the project pays off $1200 and this state occurs with a 60% probability. In the unsuccessful state the project pays of $0. Applying a discount rate of 25%, what is the expected value of this project today? *
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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
