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Evaluating the cash flows from this project

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Question - Average stocks are yielding 7.0%, while short-term treasuries return 3.0%. Marshall Inc. has a beta of 1.3 and is considering a new venture into an industry with direct competitors who have betas that average 1.8. What discount rate should Marshall use in evaluating the cash flows from this project?

a. 4.8%

b. 8.2%

c. 10.2%

d. 10.0%

Reference no: EM133062199

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