9 Problem 12-31 CAPM and Valuation (L03) 2 Ots 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: Years 0 1510 Cash Flow 100 + 17 On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.44. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 11%, what is the net present value of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.) Answer is complete but not entirely correct. Net present value 10.07 X million