#10

Check my work You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows: Years 0 10 Cash Flow -100 +17 On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.32. Assume that the rate of return available on risk-free Investments is 3% and that the expected rate of return on the market portfolio Is 16%. a. What is the project IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) IRR % b. What is the cost of capital for the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)