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24) Carl's Workshop is considering a new project that will cost $75,000 and generate cashflows...

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Finance

24) Carl's Workshop is considering a new project that will cost $75,000 and generate cashflows of $19,000 per year for 6 years. The firm's cost of capital is 8%. The current rate on Treasury securities is 4.3% while the expected return on the market is 15.5%and the firm's beta is 1.6,

Calculate the risk-adjusted discount rate using the CAPM method.

Calculate the NPV under the risk-adjusted discount rate method and state if this is an acceptable project and why(or why not).

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