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Novak Inc. now has the following two projects available: Assume that RF=5.3 percent, risk premium =10.8 percent, and beta =1.1. Use the chain replication approach
Novak Inc. now has the following two projects available: Assume that RF=5.3 percent, risk premium =10.8 percent, and beta =1.1. Use the chain replication approach to determine which project Novak Inc, should choose if they are mutually exclusive. (Round cost of capital and final answers to 2 decimal places, e.z. 17.35% or 2,513.25.)
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