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Suppose a company is all equity. Its beta is 1.7. The risk free rate is 1.5% and the premium on the market is 6%. Should
Suppose a company is all equity. Its beta is 1.7. The risk free rate is 1.5% and the premium on the market is 6%. Should the company accept a project with the same risk of the company and the following cash flows?
0: -10,000 1: 1,000 2: 1,000 3: 11,000
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