You are a consultant to a large manufacturing corporation considering a project with the following net ofter-tox cash fl
Posted: Wed Mar 30, 2022 3:44 pm
You are a consultant to a large manufacturing corporation considering a project with the following net ofter-tox cash flows (in millions of dollars): Years from Now After-Tax CF -$ 37 1 to 10 $ 12 The project's beta is 1.6. Assuming ry - 5 and Erm) = 15% Required: a. What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Net present value million b. What is the highest possible beta estimate for the project before its NPV becomes negative? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Highest possible beta value