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investment theory A large manufacturer is considering a project with the following net after-tax cash flows: Cash Flow (in $millions) Year -65 1-10 15 The
investment theory
A large manufacturer is considering a project with the following net after-tax cash flows: Cash Flow (in $millions) Year -65 1-10 15 The project's beta is 1.2. The risk-free rate is 5%, the expected return on the market portfolio is 11%. What is the appropriate discount rate that reflects the risk of the project? a. b. What is the net present value of the project? The IRR for the project is 35.73%. What is the highest beta estimate for which the project NPV C. is still positive
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