17. Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are

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17. Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows:

Years Cash Flow ($ millions)

0 100 1–10 15 The firm’s existing assets have a beta of 1.4. The risk-free interest rate is 4% and the expected return on the market portfolio is 12%. What is the project’s NPV?

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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