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A project will have one of the following time 1 payoffs, each with the corresponding probability. $ 8 3 with probability 1 1 % .
A project will have one of the following time payoffs, each with the corresponding probability.
$ with probability
$ with probability
$ otherwise.
The discount rate is Debtholders contribute $ at time to finance the project. What is the promised return on the debt? Give your answer in percentage to closest percent.
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