Question: Merton Clinic managers are analyzing a new project. The projects most likely NPV is $120,000. The project cost of capital (discount rate) is 10 percent.

Merton Clinic managers are analyzing a new project. The projects most likely NPV is $120,000. The project cost of capital (discount rate) is 10 percent.

Probability NPV

0.05 ($800,000)

0.25 200,000

0.50 400,000

0.20 600,000

What is the projects standard deviation?

a. -$300,000

b. $300,485

c. *$291,719

d. $281,593

e. $300,000

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 Finance Questions!

Entries for Factory Costs and Jobs Completed Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were...

Merton Clinic managers are analyzing a new project. The projects most likely NPV is $120000. The project cost of capital (discount rate) is 10 percent. Probability NPV 0.05 ($800,000) 0.25 200,000...

Bellview Clinic managers are analyzing a new project. The projects most likely NPV is $400,000. The project cost of capital (discount rate) is 10 percent. Probability NPV 0.05 ($800,000) 0.25 200,000...

e cost of capital and From a purely bital budget under project cost of capital? 15.7 What is meant by the term capital rationing? From a financial standpoint, what is the optimal capital budge...

Part The Capital Budgeting Process Finally, determine the present value of the cash flows and compare that $200.000 cost to determine the not present value. Present Cash Flow Brows) Present Value...

can anyone help me to answer all the question? Thank you! C F G H Learning Objectives 1. Understand how to use EXCEL Spreadsheet 4 (a) Develop Proforma Income Statement Using Excel Spreadsheet s (b)...

1. Compute New England Seafoods weighted average cost of capital. (Hint: the weighted average cost of capital is equal to = ()(1 - t) + , where and are the fractions of debt and equity in the capital...

Chapter 14 Math Problems 1. Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 8 percent. Year Expected Net Cash...

Here is full project, i cant show you full picture because my screen is small for that i divide on two screens. Please i need your help . I'm pray!! help me please with that work. I get problem to...

could you please help with the questions, I would really appreciate it. please see the photo if you need additional info let me know. thank you PLEASE RESPOND TO THESE QUESTIONS ON ANOTHER TAB Q#1...

Depreciation rate for recovery period 10 year 3 year 20 year 3.75DW 44.45 14.81 7:41 20.00% 32.00 10.20 11.52 11.52 14.29% 24.40 17.40 10 DON 18.00 14.00 5.713 5.78 5285 6.55 5.00 6.50 3.28 501 4.461...

In November 2018 Jack, the owner of two large transport trucks designed to carry ten cars each, made a contract with the owners of Acme Cars Australia Co Ltd to carry 40 cars a week between Adelaide...

Nitrogen flows in a pipe with velocity 300 m/s at 500 kPa, 300C. What is its availability with respect to an ambient at 100 kPa, 20C?

The first three terms of a geometric progression are k + 15 k and k-12 respectively. Find a the value of k b the sum to infinity.

The estimated amount of depreciation on equipment for the current year is $8,200. Journalize the adjusting entry to record the depreciation?

Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $225 and...

Superior Cleaning Services, LLC, provides cleaning services for office buildings. The firm has 10 members in the LLC, which did not change between 2016 and 2017. During 2017, the business terminated...

Moranda and Sills, LLP, has served for over 10 years as the auditor of the financial statements of Highland Bank and Trust. The firm is conducting its audit planning for the current fiscal year and...

An air conditioning manufacturer produces room air conditioners at plants in Houston, Phoenix, and Memphis. These are sent to regional distributors in Dallas, Atlanta, and Denver. The shipping costs...

How does data analytics enable sustainable innovation

18. Where will they read or interact with the communication piece? (format and media)

9. How are they similar to you? (specifically)

13. What are their tastes? (refined, middle class, or subsistence)