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oject has a recasted cash flo of $120 in year 1 and S131 in year 2. The interest rate is 7%, the estimated sk premium
oject has a recasted cash flo of $120 in year 1 and S131 in year 2. The interest rate is 7%, the estimated sk premium on he market is 10%, and he project has a beta o 60 a. The PV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value b. The certainty-equivalent cash flow in year 1 and year 2? (Do not round intermediate calculations. Round your answers to 2 decimal places.) If you use a constant risk-adusted discount rate, t Cash Flow Year 1 Year 2 c. The ratio of the certainty-equivalent cash flows to the expected cash fiows in years 1 and 2? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Ratio Year 1 Year 2
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