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capital is 20%. The risk-free interest rate is 10%. (Assume no taxes or distress costs.) a. What is the NPV of this project? initial market

image text in transcribed capital is 20%. The risk-free interest rate is 10%. (Assume no taxes or distress costs.) a. What is the NPV of this project? initial market value of the unlevered equity? equity according to MM ? Assume that the risk-free rate remains at its current level and ignore any arbitrage opportunity

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