Question
A project requires an initial investment of $500,000 depreciated straight-line to $0 in 12 years. The investment is expected to generate annual sales of $850,000
A project requires an initial investment of $500,000 depreciated straight-line to $0 in 12 years. The investment is expected to generate annual sales of $850,000 with annual costs of $700,000 for 12 years. Assume tax rate of 30% and the market risk premium of 6.0%, and the risk free rate of 10%. If the NPV of the project is $341,385.22 what is the beta of the project?
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
11th Edition
1260288390, 978-1260288391
