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5. The Horizon Company will invest $60,000 in a temporary project that will generate the cash inflows below for the next 3 years. If the

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5. The Horizon Company will invest $60,000 in a temporary project that will generate the cash inflows below for the next 3 years. If the cost of capital is 10%, how much money will they make, net of costs, if they do the project? a. What would be the best method to solve this problem? (Circle your answer) 1. Net present value calculation 2. Expected value calculation 3. Capital asset pricing model (Kf=Rt+ beta (KmRf) 4. Weighted cost of capital calculation Ib. Use the tool you selected above to solve the problem and state the dollar return, net of costs. c. Why would a company perform this sort of calculation when they are thinking of doing a project

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