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A project has a forecasted cash flow of $124 in year 1 and $135 in year 2 . The interest rate is 7%, the estimated

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A project has a forecasted cash flow of $124 in year 1 and $135 in year 2 . The interest rate is 7%, the estimated risk premium on the market is 11%, and the project has a beta of 0.64 . If you use a constant risk-adjusted discount rate, answer the following: a. What is the PV of the project? b. What is the certainty-equivalent cash flow in year 1 and year 2 ? c. What is the ratio of the certainty-equivalent cash flows to the expected cash

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