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1. Analytically derive the value of the risk premium that must be added to the gamble to make the agent indifferent between the gamble and the actuarial value of the gamble?

2. Project K costs $40,000, its expected cash inflows are $14,000 per year for 7 years, and its WACC is 9%. What is the project's NPV? Round your answer to the nearest cent.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92768982

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