The correct opportunity cost for project is determined

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Reference no: EM131077922

The correct opportunity cost for a project is determined to be 15% and the project is expected to generate $1 million in cash flows at the end of the next 4 years after an initial outlay of $3 million. Based on this information, the project would plot:

below the security market line.

on the security market line.

above the security market line.

on the security market line, with a beta of 1.0.

Reference no: EM131077922

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