Question: Winter River Farms (beta = 1.32) is considering a project with the cash flows in the table. The risk- free rate is 3% and the

Winter River Farms (beta = 1.32) is considering a project with the cash flows in the table. The risk- free rate is 3% and the expected return on the market is 17%. Should the project be accepted? Initial Investment -$100,000 End of Year 1 $40,000 End of Year 2 $40,000 End of Year 3 $40,000 End of Year 4 $40,000 O yes, because the net present value is $711.77 O cannot be determined without additional information O yes, because the net present value is $49,390.85 O no, because the net present value is - $9,482.43
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