alleryStart learning →A Rs 50,000 cash flow in a year has 60% probability; discount rate 10%. Risk-adjusted PV is about
ARs 27,273
BRs 45,455
CRs 30,000
DRs 33,000
Answer & Solution
Correct answer: A. Rs 27,273
Expected cash flow 0.6 x 50,000 = 30,000; discounted a year at 10% gives about Rs 27,273.
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