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8. You are the consultant to a large manufacturing corporation that is considering a project with the following net after-tax cash flows (in millions

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8. You are the consultant to a large manufacturing corporation that is considering a project with the following net after-tax cash flows (in millions of dollars): Year 1 through 5 (100) 30 The project's beta is 1.50. Assuming the risk-free rate is 5% and the market's expected return is 8%, what is the net present value of the project? What is the highest possible beta for the project before its NPV becomes negative? 0

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To calculate the net present value NPV of the project we need to discount the cash flows to the present value using the projects required rate of retu... blur-text-image

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