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Market risk premium is the reward investors require for taking risk. How do we calculate the market risk premium? Return on overall market plus the

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Market risk premium is the reward investors require for taking risk. How do we calculate the market risk premium? Return on overall market plus the risk-free rate Return on overall market minus Risk-free rate Risk free-rate minus the return on overall market Beta of overall market Project ABC has cash flows depicted in table below. Given that ABC has a weighted average cost of capital of 10%, calculate the NPV statistic, and determine whether to accept or reject this project. Year 0 1 2 3 4 Cash flow -1200 500 200 300 100 NPV is -286.47; Reject project NPV is -260.43; Reject project O NPV is 260.43; Accept project NPV is 286.47; Accept project

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