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Question 3 (25%) Planet Company is evaluating a capital project with the following characteristics: The initial capital outlay is 500,000 dirhams. Annual after-tax operating cash

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Question 3 (25%) Planet Company is evaluating a capital project with the following characteristics: The initial capital outlay is 500,000 dirhams. Annual after-tax operating cash flows are 90,000. Project life is 10 years. The project beta is 1.20. The risk-free rate is 4% percent and the expected market return is 10%. The cost of capital is 13% Required? (a) Compute the project's NPV. (b) Compute the project's IRR. (c) Based on the NPV and IRR results, discuss whether the project should be accepted

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