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MTM Ltd. wants to earn 14.25 percent on its current investments after inflation. Inflation is expected to average 2.8 percent over the next 5 years.

MTM Ltd. wants to earn 14.25 percent on its current investments after inflation. Inflation is expected

to average 2.8 percent over the next 5 years. What discount rate should MTM assign to a 5-year

project assuming the project has the same level of risk as the firm's current operations?

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