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Zeta Inc'S Cost of Capital Is 12% and the Risk-Free Rate

Question 72

Multiple Choice

Zeta Inc.'s cost of capital is 12% and the risk-free rate is 5%. It plans to invest in a new project. The cash flow projections ($000) for the project are given below. Calculate the certainty equivalent NPV ($000) . Zeta Inc.'s cost of capital is 12% and the risk-free rate is 5%. It plans to invest in a new project. The cash flow projections ($000) for the project are given below. Calculate the certainty equivalent NPV ($000) . A) ($19.78) B) $19.78 C) $12.20 D) ($12.20)


A) ($19.78)
B) $19.78
C) $12.20
D) ($12.20)

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