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Consider a project that has revenues of $140 in perpetuity The total costs associated with the project are 550, also in perpetuty Suppose the risk

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Consider a project that has revenues of $140 in perpetuity The total costs associated with the project are 550, also in perpetuty Suppose the risk free rate is 5% and the market risk premium is 5%. Consider also that both the revenues and variable costs move in sync with the market, that is, both have a beta of 1 Fixed costs are always "fixed", meaning they do not covary with the market A What is the value and beta of the project if all the costs are variable costs? B. What is the value and beta of the project if all the costs are fixed costs? C. What is the value and beta of the project if out of the $50 in costs, halt (525) are fxed and half ($25) are variable? Consider a project that has revenues of $140 in perpetuity The total costs associated with the project are 550, also in perpetuty Suppose the risk free rate is 5% and the market risk premium is 5%. Consider also that both the revenues and variable costs move in sync with the market, that is, both have a beta of 1 Fixed costs are always "fixed", meaning they do not covary with the market A What is the value and beta of the project if all the costs are variable costs? B. What is the value and beta of the project if all the costs are fixed costs? C. What is the value and beta of the project if out of the $50 in costs, halt (525) are fxed and half ($25) are variable

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