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Beta and NPV Analysis. A project has the following forecasted cash flows (in thousands of dollars):

Year 0

Year 1

Year 2

Year 3

($100)

$30

$50

$90

The estimated project beta is 2.0. The market return is 13 percent, and the Treasury bill yield is 6 percent. Compute (a) the Project's cost of capital and (b) the project's NPV.

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  • Reference No.:- M9951374
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