DKA uses the certainty equivalent approach to deal with total project risk and is considering a project with the following:
What is the certainty equivalent NPV for this project if the risk-free rate is 8% and the required return on the market portfolio is 15%?
A) $3,233
B) $17,743
C) - $15,243
D) $13,233

Question

DKA uses the certainty equivalent approach to deal with total project risk and is considering a project with the following: 
What is the certainty equivalent NPV for this project if the risk-free rate is 8% and the required return on the market portfolio is 15%?
A) $3,233 
B) $17,743 
C) - $15,243 
D) $13,233

Quizplus · Accepted Answer

Solution:
 11ea10f6_a153_94d6_b6b3_b7b6727482c4_TB2040_00

DKA Uses the Certainty Equivalent Approach to Deal with Total