The risk adjusted NPV
Not what you're looking for? Search our solutions OR ask your own Custom question.
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 December 24, 2021, 5:10 pm ad1c9bdddfhttps://brainmass.com/business/black-scholes-model/32830
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.
$2.49