The risk adjusted NPV
Question:
Calculate the project's risk-adjusted NPV. Should the project be accepted? What if it had a coefficient of variation (CV) of NPV of only 0.15 and was judged to be a low-risk project?
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Solution Preview
The risk adjusted NPV is calculating using the risk adjusted cost of capital instead of using the WACC. The risk adjusted cost of capital is given as 15% so you need to use that to calculate the risk adjusted NPV. You can see the ...
Solution Summary
The risk adjusted NPV calculations occur.
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