Question: please due rn !!!! A project has an expected risky cash flow of $500 in years 1,2 and 3 . The risk-free rate is 5
A project has an expected risky cash flow of $500 in years 1,2 and 3 . The risk-free rate is 5 percent, the expected market rate of return is 11 percent, and the project's beta is 0.90 . (A) Calculate the certainty equivalents cash flow for years 1.2 and 3 (CEQ). (B) What are the differences between the CEQs and risky cash flows for years 1, 2, 3? (C) What is the PV of the risky cash flows for years 1,2,3? What is the PV of the CEQ's for years 1 , 2,3
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