I found that the answer of the CAS manual and the Actex Manual are
quite different.
The problem is the 15% opportunity cost of capital. from the
question:"Great for you is a risky business, the hurdle rate is
15%", It sounds to me that the 15% is a right discount rate for the
given cash flow in punts.
so the NPV = -1000+(300/1.15+400/1.15^2+300/1.15^3)/0.5939=281
so choose E. which is different with the CAS standard answer D and
CAS manual 's A
any comments?
Weishu
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