Following and type R a project risky cash flows and certain cash flows the proje

Question

Following and type R a project risky cash flows and certain cash flows the project initial cash outlay is $240,000 and is known with certainty the firms required rate of return his temper cent in the risk free rate is 6% This project certainty equivalent coefficient in year five is: .45 .55 .65 .75
Following and type R a project risky cash flows and certain cash flows the project initial cash outlay is $240,000 and is known with certainty the firms required rate of return his temper cent in the risk free rate is 6% This project certainty equivalent coefficient in year five is: .45 .55 .65 .75
This project certainty equivalent coefficient in year five is: .45 .55 .65 .75

Explanation / Answer

Certainity equivalent coefficient = 1 / (1+6%)5

= 0.75

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