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Virtu Associates is considering a one-year project. The investment costs $3,000,000. There is a 10% probability that the project will yield a cash flow of

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Virtu Associates is considering a one-year project. The investment costs $3,000,000. There is a 10% probability that the project will yield a cash flow of $2,500,000 at the end of the first year, and a 90% probability that the project will yield a cash flow of $6,000,000 at the end of the first year. Virtu calculates the risk-adjusted rate of return for this project as 8%, and the risk-free rate is 2%. Calculate the certainty .equivalent cash flow from the project $5,231,481 A $5,539,216 B $5,330,189 C $4,009,43 D 4

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