Question: show all steps 5. CF1 = $40,000. CF2= $55,000. CF3 = $60,000. Initial investment = $100,000. WACC is 12%. No more cash flows are expected

show all steps

5. CF1 = $40,000. CF2= $55,000. CF3 = $60,000. Initial investment = $100,000. WACC is 12%. No more cash flows are expected to occur. What is the NPV? *** Round to whole number 6. Risk free rate is 4%. Equity risk premium is 6%. Beta is 2. Using the Capital Asset Pricing Model, compute the cost of equity capital. *** Round to 2 decimal places

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