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A firm has the following financial information: net Income = $255,000, equity = $1.2 million, tax rate = 21%. The firm is considering a $1

A firm has the following financial information: net Income = $255,000, equity = $1.2 million, tax rate = 21%. The firm is considering a $1 million project in which it will invest $300,000 in cash and finance the remainder at five percent interest. What discount rate should it use when evaluating the project?

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