Rolling in Dough Cookie Corporation is trying to determine its certainty equivalent NPV. What is the CNPV if the risk free ratel is 2% and the initial investment is $19,000 (rounded)?
A) $2,575.25
B) $6,655.10
C) $5,261.38
D) $4,215.15

Question

Rolling in Dough Cookie Corporation is trying to determine its certainty equivalent NPV. What is the CNPV if the risk free ratel is 2% and the initial investment is $19,000 (rounded)? 
A) $2,575.25 
B) $6,655.10 
C) $5,261.38 
D) $4,215.15

Quizplus · Accepted Answer

Solution using calculator accuracy: 11ea10f6_a154_0a0b_b6b3_4d2cc7ac53e9_TB2040_00 CNPV = $6,655.10 CF₀ -19,000 CF₁ 13,500 CF₂ 9,000 CF₃ 4,000 I/Yr 2

Rolling in Dough Cookie Corporation Is Trying to Determine Its