Question: Determine the project's standard deviation if the cash flow profile of the project is given in the table below. Assume that the cash flows are

Determine the project's standard deviation if the
Determine the project's standard deviation if the cash flow profile of the project is given in the table below. Assume that the cash flows are independent of each other. Outcome Probability Capital cost CF1 CF2 CF3 1 2 3 0.1 0.3 0.3 0.2 0.1 -3,000 -3,500 -4,500 -3,500 -3,000 1,200 1,400 2,400 1,240 1,600 2,300 1,250 1,290 2,200 1,300 1,380 2,250 1,250 1,370 2,280

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!