Question: how do I solve this in Excel? Please show what you enter in excel formula bar. Calculating a capital project beta, given expected cash flows,

how do I solve this in Excel? Please show what you enter in excel formula bar. how do I solve this in Excel? Please show what you enter
in excel formula bar. Calculating a capital project beta, given expected cash

Calculating a capital project beta, given expected cash flows, the T-bill rate, and the expected market risk premium. A project is estimated to have equal probability of generating either $ 1.100.000 annually or $ 850,000 annually for four years. The initial outlay for the project $ 3.000.000. The expected return on T-bills 5.1% and the expected market risk premium is 7.3% . What is the highest project beta that would justify acceptance of this project? Expected Project Expected market risk premium= 7.3% Year Cash Flows Initial project costa $ 3,000,000 0 Project horizon years 1 Risk-free rate= 5.1% Expected return on the market portfolio 3 Expected project cash flows= 4 2 Expected return on the project=1 Highest project beta permissables Calculating a capital project beta, given expected cash flows, the T-bill rate, and the expected market risk premium. A project is estimated to have equal probability of generating either $ 1.100.000 annually or $ 850,000 annually for four years. The initial outlay for the project $ 3.000.000. The expected return on T-bills 5.1% and the expected market risk premium is 7.3% . What is the highest project beta that would justify acceptance of this project? Expected Project Expected market risk premium= 7.3% Year Cash Flows Initial project costa $ 3,000,000 0 Project horizon years 1 Risk-free rate= 5.1% Expected return on the market portfolio 3 Expected project cash flows= 4 2 Expected return on the project=1 Highest project beta permissables

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