Zeta Inc.'s cost of capital is 12% and the risk-free rate is 5%. It plans to invest in a new project. The cash flow projections ($000)for the project are given below. Calculate the difference in the traditional NPV and the certainty equivalent NPV.

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The Answer of Zeta Inc.'s cost of capital is 12% and the risk-free rate is 5%. It plans to invest in a new project. The cash flow projections ($000)for the project are given below. Calculate the difference in the traditional NPV and the certainty equivalent NPV.

Zeta Inc'S Cost of Capital Is 12% and the Risk-Free Rate