Question: 2) (10 Points) You are evaluating a project. Upon completion you believe there are 4 possible revenue streams, each are 3 years long Year O

2) (10 Points) You are evaluating a project. Upon completion you believe there are 4 possible revenue streams, each are 3 years long Year O Year 2 Year 3 Year 4 Probability -45,000 -45,000 -45,000 10,000 9,200 8,100 7,100 15,000 13,800 12,100 10,600 20,000 18,400 16,200 14,300 25,000 23,000 20,200 17,800 10% 20% 50% 20% Average -45,000 Finally you calculated the WACC of the project to be 8%. Finish off the calculation and show what the expected NPV of the project is
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
