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Sage Inc. now has the following two projects available: Assume that RF=4.2 percent, risk premium = 9.7 percent, and beta = 1.2. Use the chain
Sage Inc. now has the following two projects available: Assume that RF=4.2 percent, risk premium = 9.7 percent, and beta = 1.2. Use the chain replication approach to determine which project Sage Inc. should choose if they are mutually exclusive. (Round cost of capital and final answers to 2 decimal places, e.g.17.35\% or 2,513.25.) NPV 1 generated over a six-year period $ NPV 2 generated over a six-year period $
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