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Step 1
Calculation of net present value of the project:
Answer:
Net present value of the project is -$10.07
Step 2
Calculation of required return based on CAPM:

Step 3
Calculation of Net present value of project:
Excel spreadsheet:

Step 4
Excel workings:

Therefore, the NPV of the project is negative (-$10.07), so the project should be rejected .