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Expected return on the market

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Two equity firms X and are considering the same new project that has a beta of 0.8. The project has an IRR of 9%. Firm X beta - 0.6 and Firm Y has a beta - 1.2. The risk-free rate is 3% and the expected return on the market is 9%.

Can you help me by providing guidance on how I should determine whether either firm X and firm y take the project and why?

Reference no: EM131992380

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