Question: Project A has cash flows in one and two years from now. The cash flow is 50 next year, and then grows at the discount

 Project A has cash flows in one and two years from

Project A has cash flows in one and two years from now. The cash flow is 50 next year, and then grows at the discount rate from year one to year two. Which statements are correct? The certainty equivalent from year one to year two grows at the discount rate The certainty equivalent from year one to year two grows at the risk-free rate If the discount rate is 25%, then the NPV of the project is 80 Project A has cash flows in one and two years from now. The cash flow is 50 next year, and then grows at the discount rate from year one to year two. Which statements are correct? The certainty equivalent from year one to year two grows at the discount rate The certainty equivalent from year one to year two grows at the risk-free rate If the discount rate is 25%, then the NPV of the project is 80

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