Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely. the initial investment required for the project is $80,000, and the project's cost of capital is 15%. the risk-free interest rate is 5%.suppose that to raise the funds for the initial investment the firm borrows $80,000 at the risk free rate, then the cost of capital for the firm's levered equity is closest to: a) 45%b) 25%c) 15%d) 95%

As per our research the correct question is

Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strongeconomy, with each outcome being equally likely. The initial investment required for the project is $80,000, and the project's cost of capital is 15%. The risk-free interest rate is 5%.6) The NPV for this project is closest to:

A) $6,250  B) $14,100  C) $10,000  D) $18,600

The correct answer is C 10,000 dollars.

Explanation:

This question requires us to calculate the NPV of project. The data is given in question. We can calculate the NPV of project by using discount rate of 15%. and expected cashflows can be calculated as follow.

Outflow = (80,000)-A

Inflow   =( 90,000*50% + 117,000*50%) * DF"

           = 0.869*103,500 = 90,000 dollars aprox-B

NPV     = 10,000 dollars (A-B)

DF = 1/1.15

answer; coefficient of correlation;

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;