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a) Assume the beta of an investment project is 1.3 and has an internal rate of return of 8%. The firm carrying out the investment

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a) Assume the beta of an investment project is 1.3 and has an internal rate of return of 8%. The firm carrying out the investment currently has an average weighted cost of capital (WACC) of 7.5%. The risk-free rate is 3%, and the average return on the market index is 7%. Should the firm carry out the investment? Explain your answer. (10 marks)

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