Points A project has an expected risky cash flow of $1,000 in year 1. The risk-free rate is 4%, the market rate of return is 12%, and the project's beta is 1.5. Calculate the certainty equivalent cash flow for year 1. A) $896.55) B $862.07 $828.91 $905.46 Question 35 1.25 Points A project has an expected cash flow of $300 in year 3. The risk-free rate is 5%, the market risk premium is 8%, and the project's beta is 1.25. Calculate the certainty equivalent cash flow for year 3. (A) $228.35 B) $197.25 $300.00 D) $278.65 Last saved
