Briefly describe about the following term the replacement cost level of rent

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Briefly describe about the following term: the "˜replacement cost" level of rent

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Q: Suppose the riskfree rate is 3% and the market risk premium is 6% and a certain asset has a beta of 0.5. The asset in question is expected to produce a perpetuity of net cash flow to its investors equal to $1,000,000 per year. Suppose the CAPM is "true", and disequilibrium in asset market prices does not endure beyond (i.e., "gets corrected" within) one year. Should you buy this asset if you can get it for a current price of $15,000,000? What would be the NPV of such an acquisition, and what would be the minimum expected return on a one-year investment in this asset at that price, and how much of that return (if any) would be considered "super-normal" (i.e., more than what is warranted by the amount of risk in the investment)?

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