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Question 13 (1 point) Saved UNNOTION corporation is considering making an investment in computer electronic project. The T-bill rate is 4.5% and the market risk
Question 13 (1 point)
Saved
UNNOTION corporation is considering making an investment in computer electronic project. The T-bill rate is 4.5% and the market risk premium is 7.5%. What is the discount rate for the project based on CAPM? A. Beta of Verizon = 1.05 B. Beta of Rolex = 1.85 C. Beta of Dell = 1.35
Question 13 options:
| 8.97% |
| 14.63% |
| 14.87% |
| 8.55% |
Question 14 (1 point)
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If the compute electronic project requires an investment of $220 and generates the cash flows of $15 for each of the next 20 years, should UNNOTION corporation undertake this project based on the NPV?
Question 14 options:
| Yes, NPV = $162.47 >0 |
| Yes, NPV = $121.51 >0 |
| No, NPV = -$168,52 <0 |
| No, NPV = -$124.15 <0 |
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