A company is considering investing in a new project with an expected return of 15%. However, the
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A company is considering investing in a new project with an expected return of 15%. However, the project comes with a risk of 12%. The company wants to ensure that the risk of the project is acceptable before investing in it. The company has a beta of 1.2, the market risk premium is 8%, and the risk-free rate is 4%. Determine whether the project is acceptable or not.
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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