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PROJECT Vice City San Andreas Chinatown t: CASH FLOWS 1 23 -100 10 10 10 10 100 0 4 5 -100 80 40 C 0 0 -100 0 30 30 30 30 B (beta) A 0.7 0.5 r (cost of capital) 6 D E NPV B47 F

PROJECT Vice City San Andreas Chinatown t: CASH FLOWS 1 23 -100 10 10 10 10 100 0 4 5 -100 80 40 C 0 0 -100 0 30 30 30 30 B (beta) A 0.7 0.5 r (cost of capital) 6 D E NPV B47 F

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

The following is a report on the estimated cash flows for 3 projects set up at 3 different locations.

Values are in million US$. Annual risk-free rate = 1.5%. Market risk premium = 4.5%.

  1. Find the missing values.
    A:
    B:
    C:
    D:
    E:
    F

NO using excel

 

PROJECT Vice City San Andreas Chinatown t: CASH FLOWS 1 2 3 0 4 5 -100 10 10 10 10 100 C 0 0 30 0 -100 80 -100 80 40 30 30 30 B (beta) A 0.7 0.5 r (cost of capital) 6 D E NPV B4F B 4 F
Transcribed Image Text:PROJECT Vice City San Andreas Chinatown t: CASH FLOWS 1 2 3 0 4 5 -100 10 10 10 10 100 C 0 0 30 0 -100 80 -100 80 40 30 30 30 B (beta) A 0.7 0.5 r (cost of capital) 6 D E NPV B4F B 4 F
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I get beta in step 1 to 1,5 since you have to subtract rm - rf which gives 3 (4,5%-1,5%) = 3%

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