A project with a beta of 1.5 has cash flows 100 in year 1, 200 i year

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A project with a beta of 1.5 has cash flows 100 in year 1, 200 i year 3, 500 in year 4 and 100 in year 6. The current expected market return is 10%. The risk free interest rate is 5%. What is the highest cost that makes this project worth investing in?

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Lectures On Corporate Finance

ISBN: 9789812568991

2nd Edition

Authors: Peter L Bossaerts, Bernt Arne Odegaard

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