A project has an estimated cash flow of $110 in year 1 and $121 in year 2. The risk-free rate is 5%, the estimated marke
Posted: Sat Jul 02, 2022 10:21 pm
A project has an estimated cash flow of $110 in year 1 and $121in year 2. The risk-free rate is 5%, the estimated market riskpremium is 10%, and the project has a βeta of 0.5. If arisk-adjusted discount rate is used:
a) What is the current value of the project?
a) What is the current value of the project?