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(Question 5)(CAPM, IRR) (Normal, Delete, WILD) A project has the following forecasted cash flows: 1 lo cccc -652.3 +300 +300 +300 / 09 No 1

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(Question 5)(CAPM, IRR) (Normal, Delete, WILD) A project has the following forecasted cash flows: 1 lo cccc -652.3 +300 +300 +300 / 09 No 1 The market return r(m) is 18%, and the risk free rate is2%. (a) Estimate the opportunity cost of capital.(CAPM) (b) Calculate the project's NPV(Net Present Value) using cost of capital calculated from (a). (c) What is the IRR of this project? (Hint: it should D integer between 15% - 22%)

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