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Problem 5.- (20 points) Suppose the stock of Grant & Sons Ltd. has a beta of 1.7. The firm is 100% equity financed. Assume a

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Problem 5.- (20 points) Suppose the stock of Grant \& Sons Ltd. has a beta of 1.7. The firm is 100% equity financed. Assume a risk-free rate of 2% and a market risk premium of 8%. Suppose Grant \& Sons Ltd. is evaluating the following independent projects. Each costs $200.000 and lasts one year. Estimated cash flow for each project are the following: What is the appropriate discount rate for an expansion of this firm? Calculate the net present value for all 3 projects

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