Suppose a project is expected to have annual revenues of


Suppose a project is expected to have annual revenues of 45,000$ for the next 10 years, beginning next year. The discount rate for the project is based on CAPM beta of 0.75. Assuming a risk-return of 3% and an expected market portfolio return of 8% what is the discount rate for the project? Further assuming a cost of 300,000 what is the NPV of the project?

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Financial Management: Suppose a project is expected to have annual revenues of
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