Recalculate the adjusted present value of the project

Reference no: EM13181769

Consider once again the information in question 7 and now consider the cost of financial distress. Assume that management believes there is 20% and 30% chance that financial distress would result in a loss of 80% and 40%, respectively, of the project"s value. Recalculate the adjusted present value of the project.

Reference no: EM13181769

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