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

Question 91

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 difference in the traditional NPV and the certainty equivalent NPV. 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 difference in the traditional NPV and the certainty equivalent NPV. A) $9.43 B) $7.59 C) $30.35 D) $20.92


A) $9.43
B) $7.59
C) $30.35
D) $20.92

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