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You work for Burgerlnc. You are evaluating a project in the firm's beverage division. Would you accept it if the project's IRR on total investment

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You work for Burgerlnc. You are evaluating a project in the firm's beverage division. Would you accept it if the project's IRR on total investment (total FCFa) was 13% ? Justify your answer if you estimated the following: Burgerlnc has two divisions (restaurants & beverage) of approximately equal size (by market value). the risk-free rate is 4%, equity-market risk-premium is 6% Burgerlnc can borrow at 5% (an "all-in" interest rate) Burgerlnc's equity beta is 1.4 and its past/current leverage is the same as its target/desired future leverage D/V=20%. MCDinc. is an all-equity "pure play" fast-food firm (comp, to your rest, division), and its stock/asset/unlevered beta is 0.7 both firms face a 30% marginal corporate tax rate

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