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Which projects should the firm undertake

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Reference no: EM13135097

Assume the expected return on the market portfolio is 15% and the riskless return is 9%. Also assume that all of the projects listed here are perpetuities with annual cash flows (in $) and betas as indicated. None of the projects requires or precludes any of the other projects, and each project costs $2,000.

a. What is the NPV of each project?
b. Which projects should the firm undertake?

Reference no: EM13135097

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