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Discount rate should be assigned to this project


Problem:

Silo Mills has a beta of 0.95 and a cost of equity of 11.9 percent. The risk-free rate of return is 2.8 percent. The firm is currently considering a project that has a beta of 1.03 and a project life of 6 years.

Required:

Question: What discount rate should be assigned to this project?

Note: Provide support for rationale.

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Accounting Basics: Discount rate should be assigned to this project
Reference No:- TGS0888713

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