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A firm has a WACC of 12% and a beta of 1. Project ABC has an expected return of 14%, but it is twice as
A firm has a WACC of 12% and a beta of 1. Project ABC has an expected return of 14%, but it is twice as risky as the firm's usual projects (beta of 2). What should the firm do? Assume the risk-free rate is 2% and the market risk premium is 10%
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Personal Finance
Authors: Jeff Madura
5th edition
132994348, 978-0132994347
