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1. You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars): The
1. You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars): The project's beta is 1.7. Assuming rf=9% and E(rM)=19%, what is the net present value of the project? What is the highest possible beta estimate for the project before its NPV becomes negative? (2)
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