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7. Advance Energy Ghana is considering an expansion of its current operations. The initial cash outlay is US$100 million. The future net cashflow will be

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7. Advance Energy Ghana is considering an expansion of its current operations. The initial cash outlay is US$100 million. The future net cashflow will be US$25 million per year for 20 years. (a) If Advance Energy's beta is 1.2. what is the appropriate risk-adjusted discount rate for the expansion project if the market risk premium 8.6% and the risk-free rate of 5.2% ? E(Rs) (b) What is the NPV of Advance Energy's investment project

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