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3. The potential projects that Belfry is considering have the following expected cash flows.Each project has its own unique risk and as such, the beta
3. The potential projects that Belfry is considering have the following expected cash flows.Each project has its own unique risk and as such, the beta on each project is given. Assuming the market risk premium (MRP) currently estimated to be 7.5% and the risk-free rate is 0.95%,
what is the required percentage return for each of the projects? Show the required returns to 2 decimals, that is xx.xx%.
Project A Project B Project C Project D
Beta 1.2 1.6 1.7 1.5
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