Question 1: Imagine the organization you are working for is considering investing in one of...

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Accounting

Question 1:

Imagine the organization you are working for is considering investing in one of two mutually exclusive projects. You have been asked to carry out a risk assessment for each of the following two projects.

Project A currently has an expected net present value of $31,200 and a standard deviation of $4,000.

Comparatively, Project B has an expected net present value of $35,000 but a standard deviation of $6,000.

Which project would you recommend? Why?

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