Question: Find: Net present value for worst-case Project: Cost = $7,750,000 Payback = 8 yr Comparable beta = 1.5 Market: Risk Premium = 10 % Treasury

Find: Net present value for worst-case

Project:

Cost = $7,750,000

Payback = 8 yr

Comparable beta = 1.5

Market:

Risk Premium = 10 %

Treasury = 3 %

Firm:

Beta = .92

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