An investment of $90 today is expected to return $110 in one year The risk free rate for one year is 4 and the risk premium for projects of equivalent risk is 6 What is the project NPV A $90 B $10 C $100 D $110 E $20

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An investment of $90 today is expected to return $110 in one year. The risk-free rate for one year is 4% and the risk premium

An investment of $90 today is expected to return $110 in one year. The risk-free rate for one year is 4% and the risk premium for projects of equivalent risk is 6%. What is the project NPV?

A.
$90

B.
$10

C.
$100

D.
$110

E.
$20

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