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UNNOTION corporation is considering making an investment in computer electronic project. The T-bill rate is 4.5% and the market risk premium is 7.5%. What is
UNNOTION corporation is considering making an investment in computer electronic project. The T-bill rate is 4.5% and the market risk premium is 7.5%. What is the discount rate for the project based on CAPM? A. Beta of Verizon = 1.05 B. Beta of Rolex = 1.85 C. Beta of Dell = 1.35 8.97% 14.63% 14.87% 8.55% If the compute electronic project requires an investment of $220 and generates the cash flows of $15 for each of the next 20 years, should UNNOTION corporation undertake this project based on the NPV? Yes, NPV = $162.47 >O Yes, NPV = $121.51 >O O No, NPV = -$168,52
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