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9. Geothermal Inc. is considering a new energy production project. Using the following information evaluate the project. Year Est. Cash Flows (in millions) 0 (150)

9. Geothermal Inc. is considering a new energy production project. Using the following information evaluate the project. Year Est. Cash Flows (in millions) 0 (150) 1 25 2 75 3 75 4 25 Beta = 1.20 Rf = .06 E(Rm) = .15 YTM = .08 Tax rate = .35 Stock Price = $20 Shares outstanding = 22.65 million Market value of bonds = $194 million

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