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Risk free rate is 4%. Equity risk premium is 6%. Beta is 2. Using the Capital Asset Pricing Model, compute the cost of equity capital.

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Risk free rate is 4%. Equity risk premium is 6%. Beta is 2. Using the Capital Asset Pricing Model, compute the cost of equity capital. Earnings Before Interest and Taxes is 300. Depreciation is 50. Capital Expenditure is 60. Net additions to Working Capital is 0. Taxes are 30. Compute Cash Flow From Assets (CFFA). If Net Present Value (NPV) is less than Zero, you: Accept the project Reject the project Flip a coin Sleep on it. An investment costs $1, 600 at time 0. In year 1, the project will generate $250. In year 2 it will generate

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