AutoSave We FIN333 Final Exam 10.2020 OFF Design References Mailings Review View O Tell me 2 Share O Comments Home Insert Draw Layout v A A° = E v E E E Aa v AaBbCcDdE AaBb AaBbCcDdEe AaBbCcDdEe...

Extracted text: AutoSave We FIN333 Final Exam 10.2020 OFF Design References Mailings Review View O Tell me 2 Share O Comments Home Insert Draw Layout v A A° = E v E E E Aa v AaBbCcDdE AaBb AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDdEe AaBbCcDdEe U v ab A v I v A = == = Paste х, х Normal No Spacing Subtle Emph. Styles Pane В I Heading 1 Heading 2 Title Subtitle Emphasis Cash Flows -69 Risk Free Rate 4.0% Beta of company's stock Risk Premium on average 11 2.3 14 stock 5.5% 10 13 16 15 15 11 16 15 10 35 Using the IRR approach to capital budgeting, should the firm adopt this project? Hint: you will need to apply the CAPM to estimate the firm's cost of equity capital. Please compare the IRR to the cost of capital: IRR Cost of Capital (Required Return) Difference (IRR - Cost of Capital) #1 What is that difference? A Between -10.0% and -4.0% B Between -4.0% and 0.0% C Between 0.0% and 4.0% D Between 4.0% and 10.0% Page 1 of 10 133 of 734 words DE English (United States) O Focus 120%