Explore BrainMass
Share

Explore BrainMass

    Certainty Equivalent Cash Flow Analysis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A project has an expected risky cash flow of $500, in year 4. The risk-free rate is 4%, the market rate of return is 13%, and the project's bea is 1.2 Calculate the certainty equivalent cash flow for year 4.

    © BrainMass Inc. brainmass.com October 10, 2019, 5:16 am ad1c9bdddf
    https://brainmass.com/business/cash/certainty-equivalent-cash-flow-analysis-499582

    Solution Summary

    This solution calculates the certainty equivalent cash flow for Year 4.

    $2.19