Suppose you are deciding whether to invest $100 million in a steel mill. You know the expected

Question:

Suppose you are deciding whether to invest $100 million in a steel mill. You know the expected cash flows for the project, but they are risky—steel prices could rise or fall in the future. How would the CAPM help you select a for an NPV calculation? Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...