Rolling in Dough Cookie Corporation is trying to determine its certainty equivalent NPV and its NPV for the project. What is the CNPV if the risk free rate is 2% and the initial investment is $19,000 (rounded)? What is the NPV with a cost of capital of 15%?
Year Cash Flows Certainty Equivalents
1 $15 000 90%
2 $15 000 60%
3 $ 8 000 50%