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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 $122 in year 1 and $133 in year 2. The interest rate is 5%, the estimated risk premium on the market is 10.5%, and the project has a beta of 0.62. If you use a constant risk-adjusted discount rate, answer the following:
What is the PV of the project?
What is the certainty-equivalent cash flow in year 1 and year 2?
What is the ratio of the certainty-equivalent cash flows to the expected cash?

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