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Consider a project with an estimated life of five years. The risk-free rate is 8.4% pe annum. The project carries a risk and offers a

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Consider a project with an estimated life of five years. The risk-free rate is 8.4% pe annum. The project carries a risk and offers a risk premium of 5.8%. For an initial investment of R120 000, the estimated cash inflows of the project and the certaint equivalent coefficients (CECs) are as follows: Year 1 2 3 4 5 Cash inflows R40 000 R40 000 R50 000 R70 000 R70 000 CEC 0.95 0.90 0.85 0.80 0.75 The net present value using the risk-adjusted discount rate method equals R (round your answer to two decimal places after the point). The net present value using the certainty equivalent method equals R (round your answer to two decimal places after the point)

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