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Assume a project costs Sh 30,000 and yields the following uncertain cashflows: Compute the NPV of the project

      

Assume a project costs Sh 30,000 and yields the following uncertain cash flows:
Year Cash flow
1 12,000
2 14,000
3 10,000
4 6,000
Assume also that the certainty equivalent coefficients have been estimated as follows:
α0 = 1.00
α1 = 0.90
α2 = 0.70
α3 = 0.50
α4 = 0.30
The risk-free discount rate is given as 10%

Required
Compute the NPV of the project

  

Answers


Kavungya
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Kavungya answered the question on April 13, 2021 at 09:15


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