The expected net present values, Financial Accounting

Assignment Help:

A company is considering investing some independent proposals, The proposals with their expected net present values and standard deviations are given in the following table.

                                                                                                                        A             B             C           

Expected Net Present Value (in millions)                                                                $4.5      $2.4       $3.2

Standard Deviation (in millions)                                                                           1.4          0.9          1.2

The projects have the following correlations:

569_33.png

a)      Calculate the Expected Net Present Values of all the combinations, A+B, A+C, B+C, A+B+C

b)      Calculate the co-variance between A and B, A and C, B and C.

c)       Calculate the Standard Deviations of all the combinations, A+B, A+C, B+C, A+B+C

d)      Calculate the probability of negative Net Present Value of all the combinations, A+B, A+C, B+C, A+B+C

 


Related Discussions:- The expected net present values

Virtual learning expects net revenues, Virtual Learning Inc., an Ontario-ba...

Virtual Learning Inc., an Ontario-based company on the cutting edge of technology, is analyzing the possibility of providing university-level courses for York University. This virt

Calculate term of leverage liquidity and fluidity, STATEMENTS OF FINANCIAL ...

STATEMENTS OF FINANCIAL POSITION: as at 31 December 2011 Group                                 Note         2011                         2010        RM'

Loan stock in subsidiary-group accounts , Loan stock in subsidiary The h...

Loan stock in subsidiary The holding company may also invest in the loan stock of the subsidiary company or part of the loan stock of the subsidiary company. The cost of the loa

Definition of bankruptcy, DEFINITION OF BANKRUPTCY Bankruptcy is another ...

DEFINITION OF BANKRUPTCY Bankruptcy is another key area of accounting . The issues addressed here deal with the properties of an individual (a sole trader or partner in a partner

Corporate finance, Calculate the market value of Renowned Cola''s debt at y...

Calculate the market value of Renowned Cola''s debt at year-end 2005. What is the book value of debt? Why do usually use market or book values for debt? Explain.

Reduces retained earnings by the fair market value, Q. If a stockholder rec...

Q. If a stockholder receives a dividend that reduces retained earnings by the fair market value of the stock, the stockholder has received a a. large stock dividend. b. cash divide

Dividends-group accounts, DIVIDENDS The dividends that appear in the cons...

DIVIDENDS The dividends that appear in the consolidated statement of change in equity are for the holding company only. This is because the dividends of the subsidiary belong to

Measure of return in percentage terms, Both IRR and ROCE tenders a relative...

Both IRR and ROCE tenders a relative measure of return in percentage terms a feature that is seen as attractive to managers who may perhaps have difficulty in interpreting the abso

calculate the average issue price, Star Corporation issued both common and...

Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the end of 19X6 and 19X5 follow.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd