Project’s Discount Rate Assignment | Homework For You
May 21st, 2020
A project requires an investment of $200 million today and will generate in a year $300 million or $150 million with 0.6 and 0.4 probability, respectively. The risk-free rate is 5% and the Market risk premium is 7%. The project’s systematic risk coefficient is 1.5.
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The project’s discount rate (required return) is: Get Finance homework help today