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6. Suppose you are investing in a project that will generated an expected cash flow of 5 every year forever, starting next year. The project
6. Suppose you are investing in a project that will generated an expected cash flow of 5 every year forever, starting next year. The project costs you 75 to build today. (a) The risk free rate is 3 %. If your project has no risk, what is the NPV of building it? (b) Suppose the expected return on the stock market is 8 %. If the cash flows of your project have a beta of .75, what is the NPV of building the project? (c) What is the highest value for the beta of your project for which it is positive NPV to build
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