The risk-free rate of return is 9% and the market risk premium is 5%. The beta of the project under analysis is 1.4, with expected net cash flows estimated to be $500 per year for 5 years. The required investment outlay on the project is $5000. What is the project's NPV?

A) - $4362.85
B) - $3362.85
C) - $2362.86
D) $3362.85

Ans: B) - $3362.85

Business

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Long-term capacity decisions that confront managers include all of the following EXCEPT:

A) capital equipment. B) additional land. C) buildings. D) workforce size.

Business