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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
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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