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17. A firm is considering investment in a capital project which is described below. The firm's cost of capital is 18 percent and the risk-free

17. A firm is considering investment in a capital project which is described below. The firm's cost of capital is 18 percent and the risk-free rate is 6 percent. The project has a risk index of 1.5. The firm uses the following equation to determine the risk adjusted discount rate, RADR, for each project: RADR = Rf + Risk Index

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