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A project has the following forecasted cash flows: . C. -652.3 +300 +300 The project beta is 0.5. The market return r(m) is 18%, and
A project has the following forecasted cash flows: . C. -652.3 +300 +300 The project beta is 0.5. The market return r(m) is 18%, and the risk free rate is2%. The project bota is 0.5. The market (a) Estimate the opportunity cost of capital.(CAPM) (b)Calculate the project's NPV(Net Present Value) using cost of capital calculated from(a) (c) What is the IRR of this project? (Hint: it should be an integer between 15% .22%)
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