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This table shows the cash flows of 3 projects: Project C1 C2 C3 C4 C5 IA -1000 +1000 O O o IO B -2,000 +1000

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This table shows the cash flows of 3 projects: Project C1 C2 C3 C4 C5 IA -1000 +1000 O O o IO B -2,000 +1000 +1000 +4,000 +1,000 1,000 -3,000 +1,000 +1,000 O +1,000 1,000 Assume that this firm's beta= 1.75. The expected market return is 12%. The risk free rate is 2.5%. This company can borrow debt at 5.2%. The firm has $5 billion in debt. It has 6 billion shares outstanding at $2 price/shr. The corporate tax rate (Tc) = 21% What is the NPV of Porject C? Multiple Choice -$279.3 -$128.2 $306.1 -$125.2

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