Given the following cash flows and certainty equivalent factors for an investment project, determine the certainty equivalent net present value. The firm's cost of capital is 14% and the risk-free rate is 6%.
A) $32,000
B) $18,692
C) $4,238
D) cannot be determined

Question

Given the following cash flows and certainty equivalent factors for an investment project, determine the certainty equivalent net present value. The firm's cost of capital is 14% and the risk-free rate is 6%. 
A) $32,000 
B) $18,692 
C) $4,238 
D) cannot be determined

Quizplus · Accepted Answer

Solution:
 11ea10f6_a153_bbe9_b6b3_95b90ffbaeba_TB2040_00

Given the Following Cash Flows and Certainty Equivalent Factors for an Investment