The data related to a project with an investment amount of 10.000.000 TL is as follows, and the risk-free discount rate is 10%. YEAR1 YEAR2 Possibility Cash Flows Possibility Cash Flows %20 3.000.000 %25 5.000.000 %60 7.000.000 %50 8.000.000 %20 8.000.000 %25 9.000.000 Calculate the expected Net Present Value of the project and the Standard Deviation of its Net Present Value based on these data.

The data related to a project with an investment amount of 10.000.000 TL is as follows, and the risk-free discount rate is 10%. YEAR1 YEAR2 Possibility Cash Flows Possibility Cash Flows %20 3.000.000 %25 5.000.000 %60 7.000.000 %50 8.000.000 %20 8.000.000 %25 9.000.000 Calculate the expected Net Present Value of the project and the Standard Deviation of its Net Present Value based on these data.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 14P

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