4.You have a project that is positive NPV. It is very risky but the expected cash flows...
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4.You have a project that is positive NPV. It is very risky but the expected cash flows even discounted at a high discount rate generate a positive cash flow because the home run scenario is so attractive. You will know in a year whether you have indeed are in that upside state. Your chances of being in the good state as opposed to the bad one is a function of the macro environment and not your business. Explain what your thinking would be regarding undertaking this project or not. (5 points)
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Answer rating: 100% (QA)
In this scenario there are several factors to consider when deciding whether to undertake the project NPV The project has a positive Net Present Value ... View the full answer
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