Highlander Inc., an all equity firm, has a project with the projected cash flows of -$109,000; $51,800; $54,200; and $31,500 for years 0 to 3, respectively. The current risk free rate is 4%, the risk premium on the market portfolio is 8% and Highlander Inc. has a beta of 1.4. What is the NPV of Highlander's project? O -$2,589.84 O $1,466.60 O $84.94 O -$3,884.68 O -$1,266.92

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.