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15. - Sparkles CO is considering a new project which has an initial cost of 18 1,750,000 and is expected to generate $345,000 in year

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15. - Sparkles CO is considering a new project which has an initial cost of 18 1,750,000 and is expected to generate $345,000 in year one and 1 $980,000 in years 2 and 3. The firms. required rate of return for projects having this level of risk is 11%. The net present rolue for this year project A) 62,030 B) 76,619 c) 70,714 D 12,768 you own a ceno portfolio with the - following expected returns given the various states of the economy. what is the overall portfolio expected are retun? state of economy propability of Rote of retun ifa state of the Stoc LIS Bom ne normal 500 recession A 8.236 8) 6.64% 0) 3.86% d) 4.10% e) 5.49% 20% eccnant 3 lego ronstructronislexeminaglal new 3 what is the beta of the following portfolio 2 portfolio Holdings : security beta $8,500 1.60 1.25 0.75 ( A) 1.13 d 0.95 D 1.00 Amount Stock " nuested $3,000 $ 6,700 8 1.23

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