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##### You have been asked to evaluate an infinitely-lived project

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**Question**

1) You have been asked to evaluate an infinitely-lived project. Sales in the first year are;projected to be $100. Costs are projected at $50. There is no depreciation, and the tax rate;is 30%. The real required return is 10%. The inflation rate is projected to be 8% per year.;Sales and costs will increase at the rate of inflation. The project costs $300. What is the;NPV?;2) A portfolio contains four assets. Asset 1 has a beta of.8 and comprises 30% of the portfolio.;Asset 2 has a beta of 1.1 and comprises 30% of the portfolio. Asset 3 has a beta of 1.5 and;comprises 20% of the portfolio. Asset 4 has a beta of 1.6 and comprises the remaining 20%;of the portfolio. If the riskless rate is expected to be 3% and the market risk premium is 6%;what is the beta of the portfolio, the expected return on the portfolio and the market?;Additional Requirements;Level of Detail: Show all work

Paper#29730 | Written in 18-Jul-2015

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