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Car Inc. is considering a project. The project has a beta of 1.60. The T-bill rate is 5% and the market risk premium is 10%.

Car Inc. is considering a project. The project has a beta of 1.60. The T-bill rate is 5% and the market risk premium is 10%. Find the required return. If the expected return is 22%, do you accept it?

A. 13%; No

B. 21%; Yes

C. 21%; No

D. 13%; Yes

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