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A project has a forecasted cash flow of $112 in year 1 and $123 in year 2. The interest rate is 7%, the estimated risk

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A project has a forecasted cash flow of $112 in year 1 and $123 in year 2. The interest rate is 7%, the estimated risk premium on the market is 10.5%, and the project has a bete of 0.52. If you use a constant risk-adjusted discount rate, answer the following: a. What is the PV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value Book Print b. What is the certainty-equivalent cash flow in year 1 and year 2? (Do not round intermediate calculations. Round your answers to 2 decimal places.) References Certainty Equivalent Cash Flow Year 1 Year 2 c. What is the ratio of the certainty-equivalent cath flows to the expected cash flows in years 1 and 2? (Do not round Intermediate calculations, Round your answers to 2 decimal places.) Ratio Year Year 2

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