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As a financial analyst, you are tasked with evaluating a capital-budgeting project. You were instructed to use the IRR method, and you need to determine
As a financial analyst, you are tasked with evaluating a capital-budgeting project. You were instructed to use the IRR method, and you need to determine an appropriate hurdle rate. The risk-free rate is 5%, and the expected market rate of return is 10%. Your company has a beta of 0.67, and the project that you are evaluating is considered to have a risk equal to the average project that the company has accepted in the past. According to CAPM, the appropriate hurdle rate would be
Group of answer choices
0.67%.
10%.
5%.
28.35%.
8.35%.
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