21. A company is presently considering an investment proposal involving Rs 25,000. It is found that probabilities

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21. A company is presently considering an investment proposal involving Rs 25,000. It is found that probabilities for various net cash inflows expected to be generated by the proposal for three-year period are as follows:

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Compute expected monetary value EMV for each. Determine also

(a) the expected net value of the investment proposal, assuming a discount rate of 10%;

(b) risk associated with the project as measured by the standard deviation.

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Quantitative Techniques In Management

ISBN: 99835

4th Edition

Authors: N D VOHRA

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Question Posted: Aug 31, 2024 05:00 AM

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21. A company is presently considering an investment proposal involving Rs 25,000. It is found that probabilities

Question:

Cash flow Year 1 Year 2 Year 3 Prob. Cash flow Prob. Cash flow Prob. 11,000 0.3 11,000 0.4 11,000 0.2 12,000 0.1 12,000 0.2 12,000 0.3 13,000 0.2 13,000 0.3 13,000 0.4 14,000 0.4 14,000 0.1 14,000 0.1

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Quantitative Techniques In Management

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