Question: Consider the following going concern, whose balance sheet values are shown for the end of the previous year, and the flows are for the last

Consider the following going concern, whose balance sheet values are shown for the end of the previous year, and the flows are for the last year. The income tax rate is

27 %

and the interest rate on the debt is

5 %

annually. The company faces three scenarios with equal probability of occurrence. The measure of the risk of a variable is Coefficient of Variation, CV

.

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