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18 17. Your estimate of the market risk premium is 7%. The risk-free rate of retom is 3.9% and General Motors has a beta of

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Your estimate of the market risk premium is 7%. The risk-free rate of retom is 3.9% and General Motors has a beta of 1.9. According to the Capital Asset Pricing Model (CAPM) what is its expected return? O A 15.5% B 16.3% O C. 18.1% OD. 172% F p.po Assume SAP Inc received a $1 million grant under its Small Business Innovation program SAP invested the grant money and developed a system to remove metal contaminants from storm water in shipyards. The firm estimates that each shipyard spends $500,000 a year on storm water clean-up efforts. If SAP is able to sign up and retain four shipyards from the first year onwards, what is the present value (PV) of the project (not of investment) if the cost of capital for SAP is 18% per year? Assume a cost of operations and other costs for SAP equal 40% of revenue OA $6.23 million OB. 57.37 milion C. 7 million OD $5,67 million pdf

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