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A project has a forecasted cash flow of $ 1 2 2 in year 1 and $ 1 3 3 in year 2 . The
A project has a forecasted cash flow of $ in year and $ in year The interest rate is the estimated risk premium on the market is and the project has a beta of If you use a constant riskadjusted discount rate, answer the following:
What is the PV of the project?
What is the certaintyequivalent cash flow in year and year
What is the ratio of the certaintyequivalent cash flows to the expected cash?
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