a) A project starts with an initial capital outflow of RM450,000 in exchange for the following likely cash flows: End of
Posted: Mon Mar 21, 2022 4:36 pm
a) A project starts with an initial capital outflow of RM450,000
in exchange for the following likely cash flows:
End of Year 1
(RM)
End of Year 2
(RM)
Assume that the economy will be in the same condition in the
second year as it was in the first. The discounted rate of return
is 15 percent. There is no taxation or inflation.
i) Calculate the expected Net Present Value (NPV).
ii) Calculate the standard deviation of Net Present Value
(NPV).
in exchange for the following likely cash flows:
End of Year 1
(RM)
End of Year 2
(RM)
Assume that the economy will be in the same condition in the
second year as it was in the first. The discounted rate of return
is 15 percent. There is no taxation or inflation.
i) Calculate the expected Net Present Value (NPV).
ii) Calculate the standard deviation of Net Present Value
(NPV).