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

Participation of employees in management, Q. Participation of Employees in ...

Q. Participation of Employees in Management? To facilitate meaningful and effective participation of workers in the management process it was decided in March 1994 that the Cor

Various types of accounting changes can affect the financial, Various types...

Various types of accounting changes can affect the financial statements of a business enterprise differently. Assume that the following list describes changes that have a material

Selling Price of a callable bond, How do I compute the selling price of a c...

How do I compute the selling price of a callable bond? I have the bond selling price if it isn''t callable, but I don''t know how the callable feature impacts the price.

Fair value adjustments, explain the purpose and circumstances of using fair...

explain the purpose and circumstances of using fair values in preparing consolidated financial statements

Depreciate plant and equipment, 1. According to the notes to the financial ...

1. According to the notes to the financial statements, what method or methods does the company use to depreciate "plant and equipment?" What rate does it use to depreciate plant an

What is the minimal variance, Consider the expected return and standard dev...

Consider the expected return and standard deviation of the following two assets: Asset 1: E[r1]=0.1 und σ1=0.3 Asset 2: E[r2]=0.2 und σ2=0.4 (a) Draw (e.g. with Excel) the

FDD , fimnancial accounting system

fimnancial accounting system

What is the net cash provided by investing activities, Zoum Corporation had...

Zoum Corporation had the following transactions during 2014: 1. Issued $125,000 of par value common stock for cash. 2. Recorded and paid wages expense of $60,000. 3. Acquired land

Shorter compounding period, In our discussion so far, we have supposed that...

In our discussion so far, we have supposed that the compounding is done yearly, here let us see the case where compounding is complete more often.  In such case the equation (1) is

Accounting for PPE, Acquisition of Assets: The cost method of accounting is...

Acquisition of Assets: The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the authority. Cost is determined as the fair val

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