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What is the certainty equivalent of the risky

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A project's risky net cash flow is $20 000 at the end of the first year and a financial manager is prepared to exchange the claim to this risky cash flow for a claim to receive, with certainty, $9000 at the end of the first year. According to the certainty-equivalent approach what is the certainty equivalent of the risky $20 000?

Reference no: EM132999789

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