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A project has a forecasted cash flow of $ 1 1 8 in year 1 and $ 1 2 9 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:
a What is the PV of the project?
b What is the certaintyequivalent cash flow in year and year
c What is the ratio of the certaintyequivalent cash flows to the expected cash?
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