What is the required risk-adjusted return on the project

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Reference no: EM13297681

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

Reference no: EM13297681

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