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Your friend has a one-year project that will bring in either 509,000 (0.4 probability) or 1,810,000 (0.6 probability) at the end of the year. The
Your friend has a one-year project that will bring in either 509,000 (0.4 probability) or 1,810,000 (0.6 probability) at the end of the year. The project requires an outlay of $500,000 to start. How much equity can your friend raise to finance the project if potential shareholders would want a 16% return
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