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You are considering to repair an old Ford Mustang that you plan to sell after one year for 6 7 7 5 0 . That

You are considering to repair an old Ford Mustang that you plan to sell after one year for 67750. That cash flow is uncertainty with the same risk as the market. The risk-free interest rate is 7%, but your risk-adjusted rate is 12%. Suppose a car dealer now approaches and offers to buy the car from you at the end of the year for a fixed price. How much less would you accept to sell the car (to remove the uncertainty about the payoff on your investment)?

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