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A7. (NPV of a risky project) Suppose a firm currently has an unleveraged required return of 10% and perpetual unleveraged after-tax income of $140,301 per year. The firm has come up with an investment opportunity that would alter the firm‚s asset makeup so that it would increase its perpetual unleveraged after-tax income to $170,650 per year. Because the new asset mix is riskier, the firm‚s unleveraged required return would also increase to 12.165%. Should the firm undertake this investment opportunity?

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