2. Certainty equiralents (S9.4) A project has the following forecasted cash flows: The estimated beta is 1.5 . The market return is 16%, and the risk-free rate is 7%. A. Estimate the cost of capital for the project and the project's PV. B. What are the certainty-equivalent cash flows in each year? C. What is the ratio of the certainty-equivalent cash flow to the expected cash flow in each year? D. Explain why this ratio declines