What is the mixed armt for the project

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Reference no: EM132754666

To invest in a project that will manufacture lowcost technology products, $400 million is needed. The partners have $180 million.

The rest will be requested from two financial institutions. Financial A will contribute $120 million for which it will charge 35% interest per year.
The financial company B will contribute the rest at an annual interest rate of 17%. If shareholders expect a 40% risk premium.

Problem 1: What is the mixed ARMT for this project?

Reference no: EM132754666

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