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A firm's beta is 1.92 while the market return is 16% and the rate on Treasury securities is 5.8%. The firm is considering a project

A firm's beta is 1.92 while the market return is 16% and the rate on Treasury securities is 5.8%. The firm is considering a project that will cost $17 million and provide cashflows of $6.4 million per year for 3 years. The firm's cost of capital is 9%.

A. Calculate the risk-adjusted discount rate

B. Calculate the risk-adjusted NPV

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