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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
The Seminole Production Company is analyzing the investment in a new line of business machines. The initial outlay required is $35 million. The net cash flows expected from the investment are as follows:


If the risk-free rate is 9 percent, compute the project’s certainty equivalent net present value.
c. On the basis of the certainty equivalent analysis, should the project be accepted?
Â
 T-----------he -----------net----------- pr-----------ese-----------nt -----------val-----------ue -----------of -----------the----------- pr-----------oje-----------ct -----------usi-----------ng -----------ave-----------rag-----------e r-----------isk----------- is----------- $9-----------.98----------- mi-----------lli-----------on -----------B. -----------The----------- np-----------v o-----------f t-----------he -----------pro-----------jec-----------t u-----------sin-----------g c-----------ert-----------ain-----------ity----------- eq-----------uiv-----------ale-----------nt -----------and----------- ri-----------sk -----------fre-----------e r-----------ate----------- is-----------