Question: Consider the following two projects: Year O 1 2 3 4 5 Project A -$5,000.00 $6,000.00 $5,000.00 $3,000.00 -$1,000.00 $1,000.00 Project B -$4,000.00 $2,000.00 $2,000.00

Consider the following two projects: Year O 1 2 3 4

Consider the following two projects: Year O 1 2 3 4 5 Project A -$5,000.00 $6,000.00 $5,000.00 $3,000.00 -$1,000.00 $1,000.00 Project B -$4,000.00 $2,000.00 $2,000.00 $4,000.00 $4,000.00 $3,000.00 The risk-free rate is 2 percent, the MRP is 5 percent, and Project B has a beta of 0.80. Determine the net present value (NPV) of Project B.

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