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Retu A project has a forecasted cash flow of $130 in year 1 and 5441 in year 2. The interest rate is 5%, the estimated

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Retu A project has a forecasted cash flow of $130 in year 1 and 5441 in year 2. The interest rate is 5%, the estimated risk premium on the market is 125%, and the project has a beta of 0 20. f you use a constant risk-adjusted discount rate, antwer the following .. What is the PV of the project (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. 15 225 26 Procent value B. What is the certainty equivalent cash flow in year 1 and year 27 (Do not round intermediate calculations, Round your answers to 2 decimal places) Answer is complete but not entirely correct. Curtainty Equivalent Cash Flow Year 1 $ 11054 Year 2 5 129.55 Active Windows c. What is the ratio of the certainty-equivalent cash flows to the expected cash flows in years 1 and 22 (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Ratio Year 1 0.90 0.92 Year 2

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