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2. The above firm is considering a project that requires an investment of $10 million today, and will yield an expected cash flow of $1.5
2. The above firm is considering a project that requires an investment of $10 million today, and will yield an expected cash flow of $1.5 million a year, for 10 years, starting one year from today. The risk-free rate is 2%, and the expected rate of return on the market portfolio is 10%. What is the project's NPV if one uses the SML to estimate the cost of capital
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