Question: Dicks Inc. has a project with the projected cash flows of -$109,000; $51,800; $54,200; and $31,500 for years 0 to 3, respectively. The current risk
Dicks Inc. has a project with the projected cash flows of -$109,000; $51,800; $54,200; and $31,500 for years 0 to 3, respectively. The current risk free rate is 4%, the risk premium on the market portfolio is 8% and Dicks Inc. has a beta of 1.1. What is the NPV of Dick's project?
| -$2,589.84 | ||
| $84.94 | ||
| -$1,266.92 | ||
| $1,466.60 | ||
| -$3,884.68 |
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