Project A is expected to produce CF - $ 219 for each of 6 years, with additional 59$ income for selling the factory at the end of the 6 years. It is purely equity financed. Given a risk free rate of a 0 %, market premium of 12% and beta of 2.4, what is the PV of the project ? A.900.0 B.549.0 C.6068 D.1011.0

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
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Project A is expected to produce CF - $ 219 for each of 6 years, with additional 59$
income for selling the factory at the end of the 6 years. It is purely equity financed.
Given a risk free rate of a 0 %, market premium of 12% and beta of 2.4, what is the PV of
the project ? A.900.0 B.549.0 C.6068 D.1011.0
Transcribed Image Text:Project A is expected to produce CF - $ 219 for each of 6 years, with additional 59$ income for selling the factory at the end of the 6 years. It is purely equity financed. Given a risk free rate of a 0 %, market premium of 12% and beta of 2.4, what is the PV of the project ? A.900.0 B.549.0 C.6068 D.1011.0
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