Future interest rate Project 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% A 80.10 75.81 71.86 68.21 64.83 61.70 58.80 B 81.55 76.6
Posted: Thu Apr 28, 2022 1:53 pm
Future interest rate Project 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% A 80.10 75.81 71.86 68.21 64.83 61.70 58.80 B 81.55 76.65 72.18 68.09 64.35 60.92 57.76 с 79.00 74.01 69.47 65.35 61.59 58.16 55.02 D 79.72 75.19 71.03 67.21 63.70 60.46 57.47 E 85.82 78.73 72.52 67.05 62.21 57.92 54.10 Probability 0.05 0.2 0.2 0.2 0.15 0.1 0.1 a) Calculate the expected present value of each project. Which project maximises the expected value? Would you choose to proceed with this one? (7 marks)