4.81%

6.21%

13.72%

5.81%

None of the above

Consider a new business line that your company will start: $6,000,000 5 years Costs to launch the project: Life of the project: Cash inflows from the project: Year One Year Two Year Three Year Four Year Five Project Beta Risk-Free Rate Market Risk Premium Default Risk Premium for company's bonds Maturity Risk Premium for company's bonds $ 400,000 $1,700,000 $2,650,000 $3,400,000 $ 950,000 0.83 1.20% 5.55% 1.45% 1.15% What is the required rate of return for this project (rounded to two decimal places)