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c. Explain the Certainly Equivalent approach. Given that a project has expected cash flows of 300 in each of the next three years, calculate the

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c. Explain the Certainly Equivalent approach. Given that a project has expected cash flows of 300 in each of the next three years, calculate the certainty equivalent cash flow in each year. The risk-free rate is 5%, the market risk premium is 8% and the project's beta is 1.25. Using both certainty equivalent cash flows and also the conventional approach, estimate project Present Value. (10 Marks)

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