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A firm has a beta of .45. The current market return is 13% while the current return on Treasury securities is 5.2%. The firm is

A firm has a beta of .45. The current market return is 13% while the current return on Treasury securities is 5.2%. The firm is considering a project that will cost $2 million and have expected cashflows of $300,000 per year for 11 years. The firm's cost of capital is 12%.

A. Calculate the risk-adjusted discount rate

B. Calculate the risk-adjusted NPV

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