3. The potential projects that Packard is considering have the following expected cash flows. Each...
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3. The potential projects that Packard is considering have the following expected cash flows. Each project has its own unique risk and as such, the beta on each project is given. Using the data from #2 for the risk- free rate and market risk premium, what is the required percentage return for each of the projects? Show the required returns to 2 decimals, that is xx.xx%. You will use these rates when analyzing each project in the next part of the assignment, these are the required rates of return for Problems 4-6). (8 pts) Project A 1.5 Project B 1.7 Project C 1.3 Project D 0.9 #3 Beta Req return (show work) 3. The potential projects that Packard is considering have the following expected cash flows. Each project has its own unique risk and as such, the beta on each project is given. Using the data from #2 for the risk- free rate and market risk premium, what is the required percentage return for each of the projects? Show the required returns to 2 decimals, that is xx.xx%. You will use these rates when analyzing each project in the next part of the assignment, these are the required rates of return for Problems 4-6). (8 pts) Project A 1.5 Project B 1.7 Project C 1.3 Project D 0.9 #3 Beta Req return (show work)
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