5. The risk-free rate is 6.5 per cent and the average market premium is 9 per cent....
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5. The risk-free rate is 6.5 per cent and the average market premium is 9 per cent. A company is considering an all-equity financed project that has a beta of 1.015 and the expected internal rate of return of 18 per cent. Calculate the project's opportunity cost of capital. Should the company accept the project?
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