4.) Happy Enterprise Pcl plans to build a factory in Thailand. The forecasted investment and cash inflows are shown in the table below. The company uses the CAPM model to calculate the discount rate for the new project. Please use the return on the company's stock and the SET Index to calculate the company's beta.

The three-year government bond is traded at the yield of 5 percent. The return on the stock market in the past three years is at 9 percent. What are the NPV and IRR of the project? Will the company proceed with the investment? (6 points)

Cash Flow

		(Million Baht)
2008	2009	2010	2011
-300	55	75	250

Return (%)

	SET Index		Stock
June. 1	1		2
June. 2	-2		-4
June. 3	2		4
June. 4	-1		-2
June. 5	2		4