Aproject has a forecasted cash flow of $110 in year 1 and $121 in year 2. The interest rate,is 5 percent, the estimated risk premium on the market is 10 percent, and the project has,a beta of .5. If you use a constant risk-adjusted discount rate, what is,1. The PV of the project?,,2.The ratio of the certainty-equivalent cash flows to the expected cash flows in years,1 and 2?,
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