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2 . You are a consultant to a firm evaluating an expansion of its current business. The cash - flow forecasts ( in millions of

2. 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. Year 0: initial outlay of 100, Years 1 to10: 14 each year.On the basis of the behavior of the firms stock, you believe that the beta of the firm is 1.5. Assuming that the rate of return available onrisk-free investment is 4% and that the expected rate of return on the market portfolio is 13%, what is the (risk-adjusted) net present value of the project?

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