Table 11.6 A Corporation Is Assessing the Risk of Two Capital Budgeting

question 101

Multiple Choice

Table 11.6
A corporation is assessing the risk of two capital budgeting proposals.The financial analysts have developed pessimistic,most likely,and optimistic estimates of the annual cash inflows which are given in the following table.The firm's cost of capital is 10 percent.
-The expected net present value of Project A if the outcomes are equally probable and the project has five-year life is ________.(See Table 11.6)

• A)-$1,045
• B)$17,910
• C)$36,865
• D)$93,730

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Associate

To connect or link someone or something in one's mind with something else.

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The act of examining and interpreting the perceptions and judgments formed about others or oneself during interactions.

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