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Company T is an all-equity firm with a beta of 1.2. The risk-free rate is 4%, and the expected return on the market portfolio is

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Company T is an all-equity firm with a beta of 1.2. The risk-free rate is 4%, and the expected return on the market portfolio is 8%. They are evaluating a new five-year project similar to its existing operations. What should be the discount rate for the new project? You should show your calculation with the answer to earn full credit

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