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A firm has a beta of .68 while the market return is 12.9% and the rate on Treasury securities is 4.7%. The firm is considering

A firm has a beta of .68 while the market return is 12.9% and the rate on Treasury securities is 4.7%. The firm is considering a project that will cost $22 million and provide expected cashflows of $4.3 million per year for 6 years. The firm's cost of capital is 14%.

A. Calculate the risk-adjusted discount rate

B. Calculate the risk-adjusted NPV

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