Event Prob. CFO CF1 CF2 CF3 Pessimistic .3 Neutral .4 Optimistic .3 -100 105 -115 0 -100 110 0 -100 115 115 0 0

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The following project is under consideration:
Event
Pessimistic .3
Neutral
Prob. CFO CF1 CF2 CF3
Optimistic .3
Answer:
.4
Check
-100 105 -115
-100
110 0
0
0
The firm's cost of capital is 10%. Calculate the standard deviation of the project's NPV.
Enter your answer without a $
-100 115 115 0
Transcribed Image Text:The following project is under consideration: Event Pessimistic .3 Neutral Prob. CFO CF1 CF2 CF3 Optimistic .3 Answer: .4 Check -100 105 -115 -100 110 0 0 0 The firm's cost of capital is 10%. Calculate the standard deviation of the project's NPV. Enter your answer without a $ -100 115 115 0
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