Question: Consider the following expected net cash flows for a project: Year Expected NCF Certainty Equivalent Factor Certainty Flows table [ [ 0 , 1

Consider the following expected net cash flows for a project:
Year
Expected NCF
Certainty Equivalent Factor
Certainty
Flows
\table[[0,1.0,],[1,80,000,0.5],[2,0.5,],[3,60,000,0.5],[4,10,000,0.6],[5,10,000,0.4]]
Your boss wants you to calculate the NPV of this project and says to use the annual riskfree rate of 3% as a discount rate. Calculate NPV using this discount rate, without any risk adjustment.
Answer:
Consider the following expected net cash flows for a project: Year

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