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Rolling in Dough Cookie Corporation is trying to determine its certainty equivalent NPV and its NPV for the project. What is the CNPV if the risk free rate is 2% and the initial investment is $19,000 (rounded)? What is the NPV with a cost of capital of 15%?

Year Cash Flows Certainty Equivalents

1 $15 000 90%

2 $15 000 60%

3 $ 8 000 50%

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940843

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