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7. Use the CE approach to find the NPV for the project below. T 0 1 Expected Cash Flow -100,000 80,000 Degree of Risk zero

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7. Use the CE approach to find the NPV for the project below. T 0 1 Expected Cash Flow -100,000 80,000 Degree of Risk zero high CE Factor 1 .8 20 23 2 3 80,000 80,000 high high 4 5 Firm's cost of capital is 14%, market's expected return is 12%, and the current market risk premium is 7%. Hint, find the risk free rate

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