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Business, 16.12.2019 19:31 dyhji

Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely. the initial investment required for the project is $80,000, and the project's cost of capital is 15%. the risk-free interest rate is 5%.

the npv for this project is closest to:
a) $6,250
b) $14,100
c) $10,000
d) $18,600

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Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a st...
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