Table 11.8
Tangshan Mining Company is considering investment in one of two mutually exclusive projects M and N which are described below.Tangshan Mining's overall cost of capital is 15 percent,the market return is 15 percent and the risk-free rate is 5 percent.Tangshan estimates that the beta for project M is 1.20 and the beta for project N is 1.40.
-Using the risk-adjusted discount rate method of project evaluation,the NPV for Project N is ________.(See Table 11.8)

Question

Table 11.8
Tangshan Mining Company is considering investment in one of two mutually exclusive projects M and N which are described below.Tangshan Mining's overall cost of capital is 15 percent,the market return is 15 percent and the risk-free rate is 5 percent.Tangshan estimates that the beta for project M is 1.20 and the beta for project N is 1.40. 
-Using the risk-adjusted discount rate method of project evaluation,the NPV for Project N is ________.(See Table 11.8)

Quizplus · Accepted Answer

The Answer of Table 11.8
Tangshan Mining Company is considering investment in one of two mutually exclusive projects M and N which are described below.Tangshan Mining's overall cost of capital is 15 percent,the market return is 15 percent and the risk-free rate is 5 percent.Tangshan estimates that the beta for project M is 1.20 and the beta for project N is 1.40. 
-Using the risk-adjusted discount rate method of project evaluation,the NPV for Project N is ________.(See Table 11.8)

Table 11.8 Tangshan Mining Company Is Considering Investment in One of Two