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A project has two possible outcomes. The good outcome returns $5,000 next year and occurs 72% of the time. The bad outcome is total failure,
A project has two possible outcomes. The good outcome returns $5,000 next year and occurs 72% of the time. The bad outcome is total failure, returning $0, the rest of the time. If the risk free interest rate is 5.9%, the expected market return is 10.1%, and the project beta is 1.6, what is the price of the project today? (Leave final answer unrounded)
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