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Eugene Shoes has an asset beta of 1.5 and is all equity. The company consists of two divisions: shoes and athletics apparel. The company is

image text in transcribed Eugene Shoes has an asset beta of 1.5 and is all equity. The company consists of two divisions: shoes and athletics apparel. The company is considering adding a new line of yoga gear that will costs $10M this year and is equally likely to generate $50M or lose \$12M next year. The discount rate of the apparel division is 15 percent. What is the NPV of the yoga gear line? $11.74M $6.52M $23.04M

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