The following information relates to questions $8-10$

You have been provided with market state data to conduct analysis on a new project using the certainty equivalent method.

$\backslash$table$[[$Market State,Market Return,Cash Flow$],[$Boom$,72\mathrm{.}70\%,902000],[$Bull$,29\mathrm{.}60\%,398000],[$Flat$,1\mathrm{.}10\%,99000],[$Bear$,-9\mathrm{.}00\%,-50000],[$Recession$,-20\mathrm{.}30\%,-85000]]$

$3$

SCHOOL OF ECONOMIC AND FINANCE

FINE $3014/5$

MAY $2022$ TEST $|$ PAPER $2-$ Capital Budgeting

$\backslash$table$[[$Project Cost,$-3000000],[$Risk$-$free rate,$7\mathrm{.}60\%$