(b) A firm considers investing £100 million in a risky project. A bank offers to lend the firm £100 million at an intere
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(b) A firm considers investing £100 million in a risky project. A bank offers to lend the firm £100 million at an intere
(b) A firm considers investing £100 million in a risky project. A bank offers to lend the firm £100 million at an interest rate of 4%. The appropriate discount rate for the NPV calculation is thus 4%. (8 marks)
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