Highlander Inc., an all equity firm, has a project with the projected cash flows of -$109,000; $51,800; $54,200; and $31,500 for years 0 to 3, respectively. The current risk free rate is 4%, the risk premium on the market portfolio is 8% and Highlander Inc. has a beta of 1.4. What is the NPV of Highlander's project? O -$2,589.84 O $1,466.60 O $84.94 O -$3,884.68 O -$1,266.92

Highlander Inc., an all equity firm, has a project with the projected cash flows of -$109,000; $51,800; $54,200; and $31,500 for years 0 to 3, respectively. The current risk free rate is 4%, the risk premium on the market portfolio is 8% and Highlander Inc. has a beta of 1.4. What is the NPV of Highlander's project? O -$2,589.84 O $1,466.60 O $84.94 O -$3,884.68 O -$1,266.92

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 6P

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