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Project D Is a Three-Year Project That Will Cost $80,000

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Essay

Project D is a three-year project that will cost $80,000. You have estimated the
following probability distribution for the future annual cash flows of the project: Project D is a three-year project that will cost $80,000. You have estimated the following probability distribution for the future annual cash flows of the project:   The project has a beta of 0.9. The relevant risk-free rate is 4%, and the risk premium is 7%. Should this project be undertaken? The project has a beta of 0.9. The relevant risk-free rate is 4%, and the risk premium is
7%. Should this project be undertaken?

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