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Billy Bob is considering building a water slide park that will require

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Billy Bob is considering building a water slide park that will require a net investment of $200,000 and yield the following net cash flows;Year Net Cash Flows Cert. Equiv. Factor;1 $120,000.90;2 90,000.80;3 60,000.65;4 30,000.50;5 10,000.30;If the risk-free rate is 8 percent and the market risk premium is 6 percent, what is the certainty equivalent NPV for this project?;a. $ 5,746;b. $11,025;c. $ 3,703;d. $12,805

 

Paper#22409 | Written in 18-Jul-2015

Price : $17
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