4. A project cost US$285,000. It generates a cash flow of US$35,400 in year 1, US$18,300 in year 2 and US$25,300 in year 3. If the project pays US$12,500 in perpetuity at an interest rate of 9 %, what will be the NPV of the project? Supposing that you want to adjust for risk. In this situation, you consider the market return to be 18 % and the risk-free rate to be 8 %.

If the β is 1.80. What is the NPV of the project?