Question: Answer true or false and justify the false. a) You are evaluating a project that lasts a period, which you know is uncertain, for this
Answer true or false and justify the false. a) You are evaluating a project that lasts a period, which you know is uncertain, for this you have the following data -The expected value of the required investment is 1000UF, which is made at time "0" -The adjustment factor that measures the investor's degree of risk aversion is 0.8 -BCU central bank bonds are at 3% -The cash flow in period 1 is 1500UF -The interest rate of bank loans is 5% With these data, he concludes that the NPV of the project is 343UF b) When doing sensitivity analysis of a project, it is possible to provide better information to the decision maker by examining several different scenarios c) A colleague of his is appointed Minister of Transport and decides that it is convenient to give the fast train to Valparaso a go, and invest US 3,000 million in 2029 so that it begins its operation in 2030. He argues that construction takes a year and that this is optimal since by 2030 the demand for tickets will have increased enough to meet the immediate rate of return (TRI) equal to r d) You know that by increasing the investment level of a project, a point is reached at which the return per invested peso begins to decrease. Thus, as investment increases, the TIRMg (l), or return per additional peso invested, falls. Therefore, the optimal level of investment is that value of the TIRMg (l*)=0 since each peso invested up to that value of I generates a positive return >0 e) FEP teachers are happy if at the end of the course the students are clear that it is never convenient to develop projects whose NPV is less than zero and that projects with a positive NPV should always be carried out, if the resources are available for it
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