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Rolling in Dough Cookie Corporation Is Trying to Determine Its

Question 49

Multiple Choice

Rolling in Dough Cookie Corporation is trying to determine its certainty equivalent NPV. What is the CNPV if the risk free rate is 2% and the initial investment is $19,000 (rounded) ? ?  Year  Cash Flows  Certainty Equival ents 1$15,00090%2$15,00060%3$8,00050%\begin{array} { l l l } \text { Year } & \text { Cash Flows } & \text { Certainty Equival ents } \\1 & \$ 15,000 & 90 \% \\2 & \$ 15,000 & 60 \% \\3 & \$ 8,000 & 50 \%\end{array}


A) $2,575.25
B) $6,655.10
C) $5,261.38
D) $4,215.15

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