Question: ABC Company is evaluating a project that has a beta coefficient equal to 1.5. The risk-free rate is 3 percent and the market risk premium

ABC Company is evaluating a project that has a beta coefficient equal to 1.5. The risk-free rate is 3 percent and the market risk premium is 7 percent. The project will require an investment of $400,000, and will generate $155,000 in after-tax operating cash flows for the next three years. Should ABC Company embark on the project? Why

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