Required risk adjusted return on projects


The risk-free rate of return is currently 5% and the market risk premium is 4%. The beta of a project under analysis is 1.4, with expected net cash flows estimated to be $1500 per year for five years. The required investment outlay on the project is $4500, what is the required risk adjusted return on the projects: Should the project be purchased?

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Finance Basics: Required risk adjusted return on projects
Reference No:- TGS050234

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