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0.74 pts Question 7 A firm is considering investment in a capital project which is...

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0.74 pts Question 7 A firm is considering investment in a capital project which is described below. The firm's cost of capital is 18 percent and the risk-free rate is 6 percent. Assume the firm moves perfectly with the market. The firm is deciding to take the project whose risk index is 1.5. The firm has no debt and preferred stocks. The discount rate that should be used in the net present value calculation of this project to compensate for risk is 6% 15% 0 24% 18%

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