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Tved A project has a forecasted cash flow of $116 in year 1 and $127 in year 2. The interest rate is 7%, the estimated

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Tved A project has a forecasted cash flow of $116 in year 1 and $127 in year 2. The interest rate is 7%, the estimated risk premium on the market is 11.5%, and the project has a beta of 0.56. If you use a constant risk-adjusted discount rate, answer the following a. What is the PV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value es b. What is the certainty-equivalent cash flow in year 1 and year 2? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Certainty Equivalent Cash Flow Year 1 Year 2 c. What is the ratio of the certainty-equivalent cash flows to the expected cash flows in years and 27 (Do not round intermediate calculations. Round your answers to 2 decimal places) Ratio Year 1 Year 2

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