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Scenario 1st Scenario Probability 20% 2nd Scenario 30% 3rd Scenario 30% 4th Scenario 20% Predicted Cash Flows ($) for Alternative Scenarios Years 0 -9,000 1 2 3 4 -11,000 2,000 2,700 2,300 8,000 4,500 7,000 8,000 21,000 30,000 8.00% -12,000 1000 900 250 5 -$16,000 500 500 200 1,500 r/WACC What is the project's expected its standard deviation, and its coefficient of variation? 1,900 7,500 8.00% 15,000 8.00% 4,000 8.00%

Scenario 1st Scenario Probability 20% 2nd Scenario 30% 3rd Scenario 30% 4th Scenario 20% Predicted Cash Flows ($) for Alternative Scenarios Years 0 -9,000 1 2 3 4 -11,000 2,000 2,700 2,300 8,000 4,500 7,000 8,000 21,000 30,000 8.00% -12,000 1000 900 250 5 -$16,000 500 500 200 1,500 r/WACC What is the project's expected its standard deviation, and its coefficient of variation? 1,900 7,500 8.00% 15,000 8.00% 4,000 8.00%

Essentials Of Investments
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
Section: Chapter Questions
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Scenario 1st Scenario 20% Probability 0 2nd Scenario 30% 3rd Scenario 30% Predicted Cash Flows ($) for Alternative Scenarios 4th Scenario 20% Years -9,000 1 2 3 4 5 4,500 7,000 8,000 21,000 30,000 8.00% r/WACC -11,000 2,000 2,700 2,300 8,000 15,000 8.00% -$16,000 500 500 200 1,500 -12,000 1000 900 250 1,900 7,500 8.00% What is the project's expected NPV, its standard deviation, and its coefficient of variation? 4,000 8.00%
Transcribed Image Text:Scenario 1st Scenario 20% Probability 0 2nd Scenario 30% 3rd Scenario 30% Predicted Cash Flows ($) for Alternative Scenarios 4th Scenario 20% Years -9,000 1 2 3 4 5 4,500 7,000 8,000 21,000 30,000 8.00% r/WACC -11,000 2,000 2,700 2,300 8,000 15,000 8.00% -$16,000 500 500 200 1,500 -12,000 1000 900 250 1,900 7,500 8.00% What is the project's expected NPV, its standard deviation, and its coefficient of variation? 4,000 8.00%
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