Question: Ebay has an all equity firm with a current cost of (equity) capital of 16%. the risk-free rate is 6%, and the market risk premium

Ebay has an all equity firm with a current cost of (equity) capital of 16%. the risk-free rate is 6%, and the market risk premium is 10%. Ebay is considering a new project that has 50% more beta risk than the firm's assets currently have. the IRR on the new project is 20%. what is the cost of capital for the project? should the project be accepted?

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