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Assume a construction project is being considered with an IRR of 9%. Examination of firms in the construction industry allows us to estimate an all-equity
Assume a construction project is being considered with an IRR of 9%. Examination of firms in the construction industry allows us to estimate an all-equity beta of 1.12. Our firm is financed with 80% Equity and 20% Debt at ki=7% The expected return on the market is 10.2% and the risk-free rate is 4%. Do You Accept the Project
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