Given the following data, which of the following is nearest to the discount rate if sum of PVs is 0? ()Project informationYearContinuing valueCash flowsprobability01234Success0.3($3,500)($2,000)$1,000 $1,800 $2,500 $11,263 Expected0.5($3,500)($2,000)$450 $450 $450 $3,758 Failure0.2($3,500)($2,000)$0 $0 $0 $0 A: 50.0% B: 55.0% C: 57.8% D: 60.0%
Given the following data, which of the following is nearest to the discount rate if sum of PVs is 0? ()Project informationYearContinuing valueCash flowsprobability01234Success0.3($3,500)($2,000)$1,000 $1,800 $2,500 $11,263 Expected0.5($3,500)($2,000)$450 $450 $450 $3,758 Failure0.2($3,500)($2,000)$0 $0 $0 $0 A: 50.0% B: 55.0% C: 57.8% D: 60.0%
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