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    The risk adjusted NPV

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    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?

    © BrainMass Inc. brainmass.com October 9, 2019, 4:27 pm ad1c9bdddf
    https://brainmass.com/business/black-scholes-model/32830

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    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.

    $2.19