7. A project has an initial cost of $18,400 and produces cash inflows of $7,200, $8,900,...

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7. A project has an initial cost of $18,400 and produces cash inflows of $7,200, $8,900, and $7,500 over three years, respect 8. Last year, T-bills returned 2 percent while your investment in large-company stocks earned an average of 5 percent. Which

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Answer 1

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Year Cash flow P.V.Factor Discounted C.F Cumulative cash flows (18,400.00) (18,400) (18,400) 7,200.00 0.86206897 6,207 (12,19

A. risk premium

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