Question
A project with a beta of 0.75 generates after-tax incremental cash flows of $20,000 per year. The expected return on the market is 8%
A project with a beta of 0.75 generates after-tax incremental cash flows of $20,000 per year. The expected return on the market is 8% and the risk free rate is 3%. For how many years must the project generate cash flows in order for the project to just be an acceptable investment for an organization if the initial investment required for the project is $50,000?
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
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