Z

restaurant-quality carryout service for Chinese food. This investment project is to be evaluated using the certainty equivalent adjustment factor method and the risk-adjusted discount rate method. If the project has a positive value when both methods are employed, the project will be undertaken. The project will not be undertaken if either evaluation method suggests that the investment will fail to increase the value of the firm. Expected cash flow after tax (CFAT) values over the 5-year life of the investment project and relevant certainty equivalent adjustment factor information are as follows:

Hot Food Carryout Counter Investment Project

Time Period (years) Alpha Project £(CFAT)

Hot Food Carryout Counter Investment Project

Time Period (years) Alpha Project £(CFAT)

Was this article helpful?

0 0
Your Retirement Planning Guide

Your Retirement Planning Guide

Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.

Get My Free Ebook


Post a comment